ATLANTA, Jan. 30, 2014 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ) today reported financial results for the year and three months ended December 31, 2013.
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"Invesco continued to provide strong, long-term investment performance to our clients, which contributed to one of our strongest years on record," said Martin L. Flanagan, president and CEO of Invesco. "During 2013, we made additional progress against our strategic priorities, continued to expand our global investment capabilities, launched several important new products and further invested in key aspects of our business that will benefit our clients and our business over the long term. We continue to believe we are in the early stages of achieving the full potential of the organization. Reflecting further confidence in the fundamentals of our business, we returned $850 million to shareholders during the year."
2013 |
2012 |
% Change |
||||||
Adjusted Financial Measures(1,2) |
||||||||
Net revenues |
$3,252.0m |
$2,836.0m |
14.7% |
|||||
Operating income |
$1,292.1m |
$1,012.1m |
27.7% |
|||||
Operating margin |
39.7% |
35.7% |
||||||
Net income attributable to common shareholders |
$953.3m |
$748.6m |
27.3% |
|||||
Diluted EPS |
$2.13 |
$1.65 |
29.1% |
|||||
U.S. GAAP Financial Measures |
||||||||
Operating revenues(2) |
$4,644.6m |
$4,050.4m |
14.7% |
|||||
Operating income(2) |
$1,120.2m |
$842.6m |
32.9% |
|||||
Operating margin(2) |
24.1% |
20.8% |
||||||
Net income attributable to common shareholders |
$940.3m |
$677.1m |
38.9% |
|||||
Diluted EPS |
$2.10 |
$1.49 |
40.9% |
|||||
Assets Under Management(2) |
||||||||
Ending AUM |
$778.7bn |
$667.4bn |
16.7% |
|||||
Average AUM |
$725.6bn |
$645.3bn |
12.4% |
(1) |
The adjusted financial measures are all non-GAAP financial measures. See the information on pages 12 through 16 for a reconciliation to their most directly comparable U.S. GAAP measures and the notes beginning on page 23 for other important disclosures. |
(2) |
The company has adopted a discontinued operations presentation for the Atlantic Trust Private Wealth Management business ("Atlantic Trust"). Amounts presented represent continuing operations and exclude Atlantic Trust. Prior period amounts have been reclassified to conform with this presentation. The sale of Atlantic Trust was completed on December 31, 2013. |
Q4-13 |
Q3-13 |
Q4-13 vs. Q3-13 |
Q4-12 |
Q4-13 vs. Q4-12 |
|||||||||||
Adjusted Financial Measures(1, 2) |
|||||||||||||||
Net revenues |
$857.3m |
$816.4m |
5.0% |
$730.6m |
17.3% |
||||||||||
Operating income |
$347.2m |
$328.1m |
5.8% |
$258.2m |
34.5% |
||||||||||
Operating margin |
40.5% |
40.2% |
35.3% |
||||||||||||
Net income attributable to common shareholders |
$258.1m |
$246.0m |
4.9% |
$189.4m |
36.3% |
||||||||||
Diluted EPS |
$0.58 |
$0.55 |
5.5% |
$0.42 |
38.1% |
||||||||||
U.S. GAAP Financial Measures |
|||||||||||||||
Operating revenues(2) |
$1,225.1m |
$1,171.8m |
4.5% |
$1,046.7m |
17.0% |
||||||||||
Operating income(2) |
$293.3m |
$286.0m |
2.6% |
$205.5m |
42.7% |
||||||||||
Operating margin(2) |
23.9% |
24.4% |
19.6% |
||||||||||||
Net income attributable to common shareholders |
$287.4m |
$228.1m |
26.0% |
$158.7m |
81.1% |
||||||||||
Diluted EPS |
$0.64 |
$0.51 |
25.5% |
$0.35 |
82.9% |
||||||||||
Assets Under Management(2) |
|||||||||||||||
Ending AUM |
$778.7bn |
$745.5bn |
4.5% |
$667.4bn |
16.7% |
||||||||||
Average AUM |
$761.7bn |
$729.4bn |
4.4% |
$660.2bn |
15.4% |
(1) |
The adjusted financial measures are all non-GAAP financial measures. See the information on pages 12 through 16 for a reconciliation to their most directly comparable U.S. GAAP measures and the notes beginning on page 23 for other important disclosures. |
(2) |
The company has adopted a discontinued operations presentation for Atlantic Trust. Amounts presented represent continuing operations and exclude Atlantic Trust. Prior period amounts have been reclassified to conform with this presentation. The sale of Atlantic Trust was completed on December 31, 2013. |
Assets Under Management
Total assets under management (AUM) at December 31, 2013, were $778.7 billion (September 30, 2013: $745.5 billion), an increase of $33.2 billion during the fourth quarter. Total net inflows were $5.2 billion for the fourth quarter, as detailed below:
Quarterly |
Year-to-date |
||||||||||||||
Summary of net flows (in billions) |
Q4-13 |
Q3-13 |
Q4-12 |
2013 |
2012 |
||||||||||
Active |
$0.3 |
$4.8 |
$1.1 |
$13.1 |
($0.5) |
||||||||||
Passive |
0.7 |
0.2 |
1.6 |
8.6 |
10.9 |
||||||||||
Long-term net flows |
1.0 |
5.0 |
2.7 |
21.7 |
10.4 |
||||||||||
Invesco PowerShares QQQ |
2.6 |
0.8 |
(2.5) |
3.7 |
0.2 |
||||||||||
Money market |
1.6 |
3.3 |
0.1 |
9.0 |
0.1 |
||||||||||
Total net flows |
$5.2 |
$9.1 |
$0.3 |
$34.4 |
$10.7 |
||||||||||
Between October 15, 2013 and December 31, 2013, U.K. equity income AUM experienced net outflows of $4.8 billion.
Net market gains led to a $27.2 billion increase in AUM during the fourth quarter, compared to a $22.4 billion increase in the third quarter 2013. Foreign exchange rate movements led to an $0.8 billion increase in AUM during the fourth quarter, compared to an $8.4 billion increase in the third quarter 2013. Average AUM during the fourth quarter were $761.7 billion, compared to $729.4 billion for the third quarter 2013, an increase of 4.4%. All AUM amounts quoted above exclude the AUM of the discontinued operation. Further analysis is included in the supplementary schedules to this release.
Earnings Summary
The company is presenting both U.S. GAAP earnings information and non-GAAP earnings information in this release. The company believes that the additional disclosure of non-GAAP earnings provides further transparency into the business on an ongoing operations basis and allows more appropriate comparisons with our industry peers. Management uses these non-GAAP performance measures to evaluate the business, and they are consistent with internal management reporting. These measures are described more fully in the the company's Forms 10-K.
U.S. GAAP earnings information reflects the presentation of Atlantic Trust Private Wealth Management ("Atlantic Trust") as a discontinued operation. Non-GAAP earnings information excludes the discontinued operation from both current and prior periods. The sale of Atlantic Trust was completed on December 31, 2013.
Non-GAAP Earnings
This section discusses the company's fourth quarter 2013 non-GAAP financial results, as compared to the third quarter 2013. The phrase "as adjusted" is used in the following earnings discussion to identify non-GAAP information, together with the non-GAAP financial measures of net revenues, adjusted operating margin, adjusted net income attributable to common shareholders and adjusted diluted EPS. The most directly comparable U.S. GAAP items are reconciled to these non-GAAP items on pages 12 through 16 of this release.
Net revenues increased by $40.9 million (5.0%) to $857.3 million in the fourth quarter, from $816.4 million in the third quarter 2013. The change was principally due to increases in investment management fees. Foreign exchange rate changes increased fourth quarter net revenues by $10.4 million when compared to the third quarter 2013.
Investment management fees, as adjusted, increased $44.8 million (4.8%) to $982.8 million in the fourth quarter, from $938.0 million in the third quarter 2013. The increase reflects the higher average AUM. Foreign exchange rate changes increased fourth quarter management fees by $12.9 million when compared to third quarter 2013.
Service and distribution fees, as adjusted, increased $9.4 million (4.3%) to $230.1 million in the fourth quarter, from $220.7 million in the third quarter 2013, also reflecting the higher average AUM. Foreign exchange rate changes increased fourth quarter service and distribution fees by $1.2 million when compared to third quarter 2013.
Performance fees, as adjusted, were $11.1 million in the fourth quarter, compared to $8.5 million in the third quarter 2013. Foreign exchange rate changes increased performance fees by $0.8 million in the fourth quarter when compared to the third quarter 2013.
Other revenues, as adjusted, increased by $0.2 million (0.6%) to $33.3 million in the fourth quarter, compared to $33.1 million in the third quarter 2013. Foreign exchange rate changes increased third quarter other revenues by $0.1 million, when compared to third quarter 2013.
Third-party distribution, service and advisory expenses, as adjusted, increased by $16.1 million (4.2%) to $400.0 million in the fourth quarter from $383.9 million in the third quarter 2013, increasing with higher related retail management fees and service and distribution fees. Foreign exchange rate changes increased the fourth quarter third-party distribution, services and advisory expenses by $4.6 million.
Total operating expenses, as adjusted, increased by $21.8 million (4.5%) to $510.1 million in the fourth quarter, from $488.3 million in the third quarter 2013. Foreign exchange rate changes increased fourth quarter operating expenses, as adjusted, by $5.9 million when compared to the third quarter 2013.
Employee compensation expenses, as adjusted, increased by $4.0 million (1.2%) to $332.3 million in the fourth quarter, from $328.3 million in the third quarter 2013. Foreign exchange rate changes increased fourth quarter employee compensation expenses by $3.5 million when compared to the third quarter 2013.
Marketing expenses, as adjusted, increased by $7.6 million (32.3%) to $31.1 million in the fourth quarter, from $23.5 million in the third quarter 2013. The fourth quarter included $2.0 million of advertising costs related to product launches together with an additional $5.0 million of advertising and other marketing costs in support of the existing business. Foreign exchange rate changes increased fourth quarter marketing expenses by $0.4 million when compared to the third quarter 2013.
Property, office and technology expenses, as adjusted, increased $2.2 million (3.0%) to $74.9 million in the fourth quarter, from $72.7 million in the third quarter 2013. Foreign exchange rate changes increased fourth quarter property, office and technology expenses by $1.0 million when compared to the third quarter 2013.
General and administrative expenses, as adjusted, increased $8.0 million (12.5%) to $71.8 million in the fourth quarter, from $63.8 million in the third quarter 2013. The fourth quarter includes a $4.5 million increase in professional service costs and travel related to product development and fund launches. Other seasonal general and administrative expenses increased in the fourth quarter by $2.5 million when compared to the third quarter 2013. Foreign exchange rate changes increased fourth quarter general and administrative expenses by $1.0 million when compared to the third quarter 2013.
Non-operating other income and expenses, as adjusted, included equity in earnings from investments of $5.0 million in the fourth quarter, compared to $7.5 million in the third quarter 2013. Other gains and losses, net in the fourth quarter were a gain of $1.7 million compared to a third quarter 2013 gain of $6.5 million. Separately, other income of consolidated sponsored investment products (CSIP) was a gain of $3.5 million in the fourth quarter compared to a third quarter 2013 loss of $0.6 million. Interest expense, as adjusted, increased $5.5 million (56.7%) to $15.2 million in the fourth quarter, from $9.7 million in the third quarter 2013, reflecting the interest expense on the new senior notes issued during the quarter.
The effective tax rate decreased to 25.4% for the fourth quarter, from 26.6% for the third quarter 2013.
U.S. GAAP Earnings
Operating revenues increased 4.5% to $1,225.1 million in the fourth quarter, from $1,171.8 million in the third quarter 2013. Operating expenses increased by 5.2% to $931.8 million in the fourth quarter, from $885.8 million in the third quarter 2013.
On December 31, the company completed the sale of Atlantic Trust to Canadian Imperial Bank of Commerce (CIBC). Net cash proceeds of $137.0 million were received, with an additional estimated $59 million due in the first half of 2014. The operating results and gain on sale of Atlantic Trust have been classified in the income statement as a discontinued operation for all periods presented. Net income of $66.4 million was recorded in the fourth quarter attributable to the discontinued operation, compared to a net loss of $1.4 million in the third quarter 2013. The fourth quarter net income included the gain on sale of $77.5 million, operating income of $26.3 million that includes performance fee revenue, and taxation expense of $37.4 million. The commentary below relates to U.S GAAP earnings from continuing operations.
On December 31, 2013, at the time of creating a new trust company subsidiary to continue operating the company's institutional trust activities immediately following the disposition of Atlantic Trust, the company made a $31.9 million payment ($19.8 million net of taxation) to a managed investment trust, which resulted in the subsequent termination of an outstanding support agreement. This expense was recorded in other gains/(losses) in the company's Consolidated Statement of Income during the three months ended December 31, 2013.
Property, office and technology expenses includes a charge of $11.7 million ($7.4 million net of taxation)in the fourth quarter related to the write-off of capitalized IT software development costs.
The effective tax rate on continuing operations declined to 21.9% for the fourth quarter, from 27.1% for the third quarter 2013. The fourth quarter included a 1.4% rate reduction related to the other gains/(losses) and property, office and technology expenses referenced above. The impact of the inclusion of non-controlling interests in consolidated investment products (CIP) reduced our effective tax rate by 3.2 percentage points for the fourth quarter, compared to a reduction of 1.7 percentage points on our effective tax rate for the third quarter.
Balance Sheet and Cash Flow Statement Presentation
The company is presenting in this release both a U.S. GAAP balance sheet and balance sheet information excluding CIP, along with a U.S. GAAP statement of cash flows and cash flow statement information excluding CIP. The information presented excluding CIP is a non-GAAP presentation. Balance sheet and cash flow statement information before and after the consolidation of investment products are reconciled on pages 19 and 22, respectively.
The company believes that, by excluding the consolidation of investment products, the non-GAAP balance sheet and cash flow statement information provides a more representative presentation of our financial risks and the company's cash and debt positions, allowing more appropriate comparisons with our industry peers. Management uses these non-GAAP presentations to evaluate the business, and the presentations are consistent with internal management reporting. As demonstrated by the selected balance sheet data that follows, inclusion of the long-term debt of CIP within liquidity measures, such as debt-to-equity ratios, causes the company to appear to be significantly more indebted than is actually the case.
Balance Sheets and Capital Management
Selected balance sheet information is reflected in the table below:
Excluding CIP (Non-GAAP)(1) |
Including CIP (U.S. GAAP) |
|||||||||||
December 31, 2013 |
December 31, 2012 |
December 31, 2013 |
December 31, 2012 |
|||||||||
$ in millions |
||||||||||||
Cash and cash equivalents |
$1,331.2 |
$835.5 |
$1,331.2 |
$835.5 |
||||||||
Investments of CIP |
— |
— |
4,734.7 |
4,550.6 |
||||||||
Total assets(1) |
$13,952.6 |
$12,640.9 |
$19,270.5 |
$17,492.4 |
||||||||
Long-term debt |
1,588.6 |
1,186.0 |
1,588.6 |
1,186.0 |
||||||||
Debt of CIP |
— |
— |
4,181.7 |
3,899.4 |
||||||||
Long-term debt / Long-term debt plus CIP debt |
$1,588.6 |
$1,186.0 |
$5,770.3 |
$5,085.4 |
||||||||
Total liabilities(1) |
$5,649.7 |
$4,448.6 |
$10,293.2 |
$8,443.4 |
||||||||
Total equity(1) |
$8,302.9 |
$8,192.3 |
$8,977.3 |
$9,049.0 |
||||||||
Debt/Equity % (1) (2) |
19.1 |
% |
14.5 |
% |
64.3 |
% |
56.2 |
% |
(1) |
The balance sheet line items excluding CIP are non-GAAP financial measures. See the reconciliation information on page 19 for balance sheet information before and after the consolidation of investment products. |
(2) |
The debt/equity ratio excluding CIP is a non-GAAP financial measure. The debt/equity ratio is calculated as long-term debt divided by total equity for the balance sheet information excluding CIP and long-term debt plus debt of CIP divided by total equity for the balance sheet including CIP. |
As of December 31, 2013, the company's cash and cash equivalents were $1,331.2 million, with long-term debt of $1,588.6 million. The credit facility balance was zero at December 31, 2013, compared to $788.0 million at September 30, 2013 and $586.5 million at December 31, 2012.
On November 12, 2013, the company completed the issuance of senior notes with aggregate principal amounts of $600.0 million at 4.000% due January 30, 2024 and $400.0 million at 5.375% due November 30, 2043. The proceeds were used, in part, to repay the outstanding balance on the credit facility at that date. Separately on December 17, 2013, the company amended the existing $1.25 billion credit facility to extend its maturity to December 17, 2018.
During the fourth quarter the company repurchased $350.0 million of its common shares on the open market, representing 10.1 million shares at a weighted average share price of $34.64. The company repurchased $470.5 million of its common shares during 2013, representing 13.9 million shares at a weighted average price of $33.74.
Dividends paid in the fourth quarter were $100.5 million bringing total 2013 full-year cash dividends to $379.7 million. Today the company is announcing a fourth-quarter cash dividend of 22.5 cents per share to holders of common shares. The dividend is payable on March 7, 2014, to shareholders of record at the close of business on February 20, 2014, with an ex-dividend date of February 18, 2014.
Headcount
As of December 31, 2013, on a continuing operations basis, the company had 5,932 employees, compared to 5,864 employees as of September 30, 2013.
# # #
Invesco Ltd. is a leading independent global investment management firm, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our clients around the world. Operating in more than 20 countries, the firm is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at www.invesco.com.
Members of the investment community and general public are invited to listen to the conference call today, January 30, 2014, at 9:00 a.m. ET by dialing one of the following numbers: 1-866-617-1526 for U.S. and Canadian callers or 1-210-795-0624 for international callers. An audio replay of the conference call will be available until Wednesday, February 12, 2014 at 5:00 p.m. ET by calling 1-866-400-9658 for U.S. and Canadian callers or 1-203-369-0550 for international callers. A presentation highlighting the company's performance will be available during a live Webcast and on Invesco's Website at www.invesco.com.
# # #
This release, and comments made in the associated conference call today, may include "forward-looking statements." Forward-looking statements include information concerning future results of our operations, expenses, earnings, liquidity, cash flow and capital expenditures, industry or market conditions, assets under management, acquisitions and divestitures, debt and our ability to obtain additional financing or make payments, regulatory developments, demand for and pricing of our products and other aspects of our business or general economic conditions. In addition, words such as "believes," "expects," "anticipates," "intends," "plans," "estimates," "projects," "forecasts," and future or conditional verbs such as "will," "may," "could," "should," and "would" as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements.
Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from our expectations. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our most recent Form 10-K and subsequent Forms 10-Q, filed with the Securities and Exchange Commission. You may obtain these reports from the SEC's website at www.sec.gov. We expressly disclaim any obligation to update the information in any public disclosure if any forward-looking statement later turns out to be inaccurate.
Invesco Ltd. Non-GAAP Condensed Consolidated Income Statement Information (Unaudited, in millions, other than per share amounts, headcount and AUM) |
||||||||||||||
Q4-13 |
Q3-13 |
% Change |
Q4-12 |
% Change |
||||||||||
Adjusted revenues: |
||||||||||||||
Investment management fees |
$982.8 |
$938.0 |
4.8 |
% |
$836.3 |
17.5 |
% |
|||||||
Service and distribution fees |
230.1 |
220.7 |
4.3 |
% |
199.5 |
15.3 |
% |
|||||||
Performance fees |
11.1 |
8.5 |
30.6 |
% |
3.6 |
208.3 |
% |
|||||||
Other |
33.3 |
33.1 |
0.6 |
% |
27.3 |
22.0 |
% |
|||||||
Third-party distribution, service and advisory |
(400.0) |
(383.9) |
4.2 |
% |
(336.1) |
19.0 |
% |
|||||||
Net revenues |
857.3 |
816.4 |
5.0 |
% |
730.6 |
17.3 |
% |
|||||||
Adjusted operating expenses: |
||||||||||||||
Employee compensation |
332.3 |
328.3 |
1.2 |
% |
320.3 |
3.7 |
% |
|||||||
Marketing |
31.1 |
23.5 |
32.3 |
% |
23.6 |
31.8 |
% |
|||||||
Property, office and technology |
74.9 |
72.7 |
3.0 |
% |
68.6 |
9.2 |
% |
|||||||
General and administrative |
71.8 |
63.8 |
12.5 |
% |
59.9 |
19.9 |
% |
|||||||
Total adjusted operating expenses |
510.1 |
488.3 |
4.5 |
% |
472.4 |
8.0 |
% |
|||||||
Adjusted operating income |
347.2 |
328.1 |
5.8 |
% |
258.2 |
34.5 |
% |
|||||||
Adjusted other income/(expense): |
||||||||||||||
Equity in earnings of unconsolidated affiliates |
5.0 |
7.5 |
(33.3) |
% |
2.8 |
78.6 |
% |
|||||||
Interest and dividend income |
4.0 |
3.2 |
25.0 |
% |
4.1 |
(2.4) |
% |
|||||||
Interest expense |
(15.2) |
(9.7) |
56.7 |
% |
(12.7) |
19.7 |
% |
|||||||
Other gains and losses, net |
1.7 |
6.5 |
(73.8) |
% |
(0.4) |
N/A |
||||||||
Other income/(loss) of CSIP, net |
3.5 |
(0.6) |
N/A |
— |
N/A |
|||||||||
Adjusted income before income taxes |
346.2 |
335.0 |
3.3 |
% |
252.0 |
37.4 |
% |
|||||||
Adjusted income tax provision |
(87.9) |
(89.0) |
(1.2) |
% |
(62.6) |
40.4 |
% |
|||||||
Adjusted net income |
258.3 |
246.0 |
5.0 |
% |
189.4 |
36.4 |
% |
|||||||
Adjusted net (income)/loss attributable to noncontrolling interests in consolidated entities |
(0.2) |
— |
N/A |
— |
N/A |
|||||||||
Adjusted net income attributable to common shareholders |
$258.1 |
$246.0 |
4.9 |
% |
$189.4 |
36.3 |
% |
|||||||
Adjusted diluted EPS |
$0.58 |
$0.55 |
5.5 |
% |
$0.42 |
38.1 |
% |
|||||||
Average diluted shares outstanding |
445.9 |
448.8 |
(0.6) |
% |
451.2 |
(1.2) |
% |
|||||||
Ending headcount |
5,932 |
5,864 |
1.2 |
% |
5,889 |
0.7 |
% |
|||||||
Ending AUM (in billions) |
$778.7 |
$745.5 |
4.5 |
% |
$667.4 |
16.7 |
% |
|||||||
Average AUM (in billions) |
$761.7 |
$729.4 |
4.4 |
% |
$660.2 |
15.4 |
% |
Invesco Ltd. Non-GAAP Condensed Consolidated Income Statement Information (Unaudited, in millions, other than per share amounts, headcount and AUM) |
||||||||
Year Ended December 31, |
||||||||
2013 |
2012 |
% Change |
||||||
Adjusted revenues: |
||||||||
Investment management fees |
$3,688.8 |
$3,210.0 |
14.9 |
% |
||||
Service and distribution fees |
872.8 |
771.6 |
13.1 |
% |
||||
Performance fees |
67.2 |
43.8 |
53.4 |
% |
||||
Other |
121.1 |
110.8 |
9.3 |
% |
||||
Third-party distribution, service and advisory |
(1,497.9) |
(1,300.2) |
15.2 |
% |
||||
Net revenues |
3,252.0 |
2,836.0 |
14.7 |
% |
||||
Adjusted operating expenses: |
||||||||
Employee compensation |
1,318.1 |
1,219.5 |
8.1 |
% |
||||
Marketing |
102.0 |
103.3 |
(1.3) |
% |
||||
Property, office and technology |
282.3 |
262.6 |
7.5 |
% |
||||
General and administrative |
257.5 |
238.5 |
8.0 |
% |
||||
Total adjusted operating expenses |
1,959.9 |
1,823.9 |
7.5 |
% |
||||
Adjusted operating income |
1,292.1 |
1,012.1 |
27.7 |
% |
||||
Adjusted other income/(expense): |
||||||||
Equity in earnings of unconsolidated affiliates |
20.0 |
14.6 |
37.0 |
% |
||||
Interest and dividend income |
14.5 |
19.8 |
(26.8) |
% |
||||
Interest expense |
(44.6) |
(52.3) |
(14.7) |
% |
||||
Other gains and losses, net |
7.0 |
9.8 |
(28.6) |
% |
||||
Other income/(loss) of CSIP, net |
2.9 |
— |
N/A |
|||||
Adjusted income before income taxes |
1,291.9 |
1,004.0 |
28.7 |
% |
||||
Adjusted income tax provision |
(340.8) |
(255.4) |
33.4 |
% |
||||
Adjusted net income |
951.1 |
748.6 |
27.1 |
% |
||||
Adjusted net (income)/loss attributable to noncontrolling interests in consolidated entities |
2.2 |
— |
N/A |
|||||
Adjusted net income attributable to common shareholders |
$953.3 |
$748.6 |
27.3 |
% |
||||
Adjusted diluted EPS |
$2.13 |
$1.65 |
29.1 |
% |
||||
Average diluted shares outstanding |
448.5 |
453.8 |
(1.2)% |
|||||
Ending headcount |
5,932 |
5,889 |
0.7 |
% |
||||
Ending AUM (in billions) |
$778.7 |
$667.4 |
16.7 |
% |
||||
Average AUM (in billions) |
$725.6 |
$645.3 |
12.4 |
% |
Invesco Ltd. U.S. GAAP Condensed Consolidated Income Statements (Unaudited, in millions, other than per share amounts) |
||||||||||||||
Q4-13 |
Q3-13 |
% Change |
Q4-12 |
% Change |
||||||||||
Operating revenues: |
||||||||||||||
Investment management fees |
$955.1 |
$914.4 |
4.5 |
% |
$818.2 |
16.7 |
% |
|||||||
Service and distribution fees |
230.1 |
220.7 |
4.3 |
% |
199.5 |
15.3 |
% |
|||||||
Performance fees |
8.7 |
5.1 |
70.6 |
% |
2.4 |
262.5 |
% |
|||||||
Other |
31.2 |
31.6 |
(1.3) |
% |
26.6 |
17.3 |
% |
|||||||
Total operating revenues |
1,225.1 |
1,171.8 |
4.5 |
% |
1,046.7 |
17.0 |
% |
|||||||
Operating expenses: |
||||||||||||||
Employee compensation |
333.4 |
330.3 |
0.9 |
% |
322.0 |
3.5 |
% |
|||||||
Third-party distribution, service and advisory |
396.2 |
380.9 |
4.0 |
% |
350.0 |
13.2 |
% |
|||||||
Marketing |
30.0 |
22.6 |
32.7 |
% |
23.1 |
29.9 |
% |
|||||||
Property, office and technology |
85.8 |
71.9 |
19.3 |
% |
70.1 |
22.4 |
% |
|||||||
General and administrative |
86.4 |
80.1 |
7.9 |
% |
73.4 |
17.7 |
% |
|||||||
Transaction and integration |
— |
— |
N/A |
2.6 |
N/A |
|||||||||
Total operating expenses |
931.8 |
885.8 |
5.2 |
% |
841.2 |
10.8 |
% |
|||||||
Operating income |
293.3 |
286.0 |
2.6 |
% |
205.5 |
42.7 |
% |
|||||||
Other income/(expense): |
||||||||||||||
Equity in earnings of unconsolidated affiliates |
10.2 |
10.3 |
(1.0) |
% |
7.9 |
29.1 |
% |
|||||||
Interest and dividend income |
3.3 |
2.4 |
37.5 |
% |
2.7 |
22.2 |
% |
|||||||
Interest expense |
(15.2) |
(9.7) |
56.7 |
% |
(12.7) |
19.7 |
% |
|||||||
Other gains and losses, net |
(18.9) |
3.4 |
N/A |
(21.0) |
(10.0) |
% |
||||||||
Other income/(loss) of CSIP, net |
3.5 |
(0.6) |
N/A |
— |
N/A |
|||||||||
Consolidated investment products (CIP): |
||||||||||||||
Interest income of CIP |
42.5 |
46.5 |
(8.6) |
% |
52.1 |
(18.4) |
% |
|||||||
Interest expense of CIP |
(26.5) |
(33.5) |
(20.9) |
% |
(33.9) |
(21.8) |
% |
|||||||
Other gains/(losses) of CIP, net |
46.4 |
38.2 |
21.5 |
% |
(27.8) |
N/A |
||||||||
Income from continuing operations before income taxes |
338.6 |
343.0 |
(1.3) |
% |
172.8 |
95.9 |
% |
|||||||
Income tax provision |
(74.2) |
(92.9) |
(20.1) |
% |
(55.6) |
33.5 |
% |
|||||||
Income from continuing operations, net of income taxes |
264.4 |
250.1 |
5.7 |
% |
117.2 |
125.6 |
% |
|||||||
Income/(loss) from discontinued operations, net of taxes |
66.4 |
(1.4) |
N/A |
10.8 |
N/A |
|||||||||
Net income |
330.8 |
248.7 |
33.0 |
% |
128.0 |
158.4 |
% |
|||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities |
(43.4) |
(20.6) |
110.7 |
% |
30.7 |
N/A |
||||||||
Net income attributable to common shareholders |
$287.4 |
$228.1 |
26.0 |
% |
$158.7 |
81.1 |
% |
|||||||
Earnings per share: |
||||||||||||||
---Basic EPS from continuing operations |
$0.50 |
$0.51 |
(2.0) |
% |
$0.33 |
51.5 |
% |
|||||||
---Basic EPS from discontinued operations |
$0.15 |
— |
N/A |
$0.02 |
N/A |
|||||||||
---Total basic |
$0.65 |
$0.51 |
27.5 |
% |
$0.35 |
85.7 |
% |
|||||||
---Diluted EPS from continuing operations |
$0.50 |
$0.51 |
(2.0) |
% |
$0.33 |
51.5 |
% |
|||||||
---Diluted EPS from discontinued operations |
$0.15 |
— |
N/A |
$0.02 |
N/A |
|||||||||
---Total diluted |
$0.64 |
$0.51 |
25.5 |
% |
$0.35 |
82.9 |
% |
|||||||
Average shares outstanding: |
||||||||||||||
---basic |
445.0 |
447.9 |
(0.6) |
% |
449.9 |
(1.1) |
% |
|||||||
---diluted |
445.9 |
448.8 |
(0.6) |
% |
451.2 |
(1.2) |
% |
Invesco Ltd. U.S. GAAP Condensed Consolidated Income Statements (Unaudited, in millions, other than per share amounts) |
||||||||
Year ended December 31, |
||||||||
2013 |
2012 |
% Change |
||||||
Operating revenues: |
||||||||
Investment management fees |
$3,599.6 |
$3,127.8 |
15.1 |
% |
||||
Service and distribution fees |
872.8 |
771.6 |
13.1 |
% |
||||
Performance fees |
55.9 |
41.4 |
35.0 |
% |
||||
Other |
116.3 |
109.6 |
6.1 |
% |
||||
Total operating revenues |
4,644.6 |
4,050.4 |
14.7 |
% |
||||
Operating expenses: |
||||||||
Employee compensation |
1,329.3 |
1,228.0 |
8.2 |
% |
||||
Third-party distribution, service and advisory |
1,489.2 |
1,308.2 |
13.8 |
% |
||||
Marketing |
98.6 |
102.2 |
(3.5)% |
|||||
Property, office and technology |
292.8 |
265.1 |
10.4 |
% |
||||
General and administrative |
311.3 |
296.1 |
5.1 |
% |
||||
Transaction and integration |
3.2 |
8.2 |
(61.0) |
% |
||||
Total operating expenses |
3,524.4 |
3,207.8 |
9.9 |
% |
||||
Operating income |
1,120.2 |
842.6 |
32.9 |
% |
||||
Other income/(expense): |
||||||||
Equity in earnings of unconsolidated affiliates |
35.5 |
29.7 |
19.5 |
% |
||||
Interest and dividend income |
10.0 |
9.8 |
2.0 |
% |
||||
Interest expense |
(44.6) |
(52.3) |
(14.7) |
% |
||||
Other gains and losses, net |
2.6 |
8.3 |
(68.7) |
% |
||||
Other income/(loss) of CSIP, net |
2.9 |
— |
N/A |
|||||
Consolidated investment products (CIP): |
||||||||
Interest income of CIP |
190.0 |
258.5 |
(26.5) |
% |
||||
Interest expense of CIP |
(123.3) |
(168.3) |
(26.7) |
% |
||||
Other gains/(losses) of CIP, net |
61.9 |
(97.7) |
N/A |
|||||
Income from continuing operations before income taxes |
1,255.2 |
830.6 |
51.1 |
% |
||||
Income tax provision |
(336.9) |
(261.4) |
28.9 |
% |
||||
Income from continuing operations, net of income taxes |
918.3 |
569.2 |
61.3 |
% |
||||
Income/(loss) from discontinued operations, net of taxes |
64.5 |
18.1 |
256.4 |
% |
||||
Net income |
982.8 |
587.3 |
67.3 |
% |
||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities |
(42.5) |
89.8 |
N/A |
|||||
Net income attributable to common shareholders |
$940.3 |
$677.1 |
38.9 |
% |
||||
Earnings per share: |
||||||||
---Basic EPS from continuing operations |
$1.96 |
$1.46 |
34.2 |
% |
||||
---Basic EPS from discontinued operations |
$0.14 |
$0.04 |
250.0 |
% |
||||
---Total basic |
$2.10 |
$1.50 |
40.0 |
% |
||||
---Diluted EPS from continuing operations |
$1.95 |
$1.45 |
34.5 |
% |
||||
---Diluted EPS from discontinued operations |
$0.14 |
$0.04 |
250.0 |
% |
||||
---Total diluted |
$2.10 |
$1.49 |
40.9 |
% |
||||
Average shares outstanding: |
||||||||
---basic |
447.5 |
452.3 |
(1.1) |
% |
||||
---diluted |
448.5 |
453.8 |
(1.2) |
% |
Invesco Ltd. Reconciliation of U.S. GAAP Condensed Consolidated Income Statement to Non-GAAP Condensed Consolidated Income Statement Information (Unaudited, in millions, other than per share amounts) Three months ended December 31, 2013 |
||||||||||||||||||||||||
U.S. GAAP basis |
Proportional consolidation of joint ventures |
Third party distribution, service and advisory expenses |
Acquisition / Disposition related |
Market appreciation / depreciation of deferred compensation awards |
CIP |
Other reconciling items |
Non-GAAP basis |
|||||||||||||||||
Operating revenues: |
||||||||||||||||||||||||
Investment management fees |
$955.1 |
$17.7 |
$— |
$— |
$— |
$5.7 |
$4.3 |
$982.8 |
||||||||||||||||
Service and distribution fees |
230.1 |
— |
— |
— |
— |
— |
— |
230.1 |
||||||||||||||||
Performance fees |
8.7 |
— |
— |
— |
— |
2.4 |
— |
11.1 |
||||||||||||||||
Other |
31.2 |
2.1 |
— |
— |
— |
— |
— |
33.3 |
||||||||||||||||
Third-party distribution, service and advisory |
— |
(3.8) |
(396.2) |
— |
— |
— |
— |
(400.0) |
||||||||||||||||
Total operating revenues reconciled to net revenues |
1,225.1 |
16.0 |
(396.2) |
— |
— |
8.1 |
4.3 |
857.3 |
||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||
Employee compensation |
333.4 |
7.6 |
— |
— |
(8.1) |
— |
(0.6) |
332.3 |
||||||||||||||||
Third-party distribution, service and advisory |
396.2 |
— |
(396.2) |
— |
— |
— |
— |
— |
||||||||||||||||
Marketing |
30.0 |
1.1 |
— |
— |
— |
— |
— |
31.1 |
||||||||||||||||
Property, office and technology |
85.8 |
1.0 |
— |
— |
— |
— |
(11.9) |
74.9 |
||||||||||||||||
General and administrative |
86.4 |
1.7 |
— |
(5.8) |
— |
(10.3) |
(0.2) |
71.8 |
||||||||||||||||
Transaction and integration |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||
Total operating expenses |
931.8 |
11.4 |
(396.2) |
(5.8) |
(8.1) |
(10.3) |
(12.7) |
510.1 |
||||||||||||||||
Operating income reconciled to adjusted operating income |
293.3 |
4.6 |
— |
5.8 |
8.1 |
18.4 |
17.0 |
347.2 |
||||||||||||||||
Other income/(expense): |
||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates |
10.2 |
(4.3) |
— |
— |
— |
(0.9) |
— |
5.0 |
||||||||||||||||
Interest and dividend income |
3.3 |
0.9 |
— |
— |
(1.0) |
0.8 |
— |
4.0 |
||||||||||||||||
Interest expense |
(15.2) |
— |
— |
— |
— |
— |
— |
(15.2) |
||||||||||||||||
Other gains and losses, net |
(18.9) |
— |
— |
— |
(10.8) |
(0.2) |
31.6 |
1.7 |
||||||||||||||||
Other income/(loss) of CSIP, net |
3.5 |
— |
— |
— |
— |
— |
— |
3.5 |
||||||||||||||||
CIP: |
||||||||||||||||||||||||
Interest income of CIP |
42.5 |
— |
— |
— |
— |
(42.5) |
— |
— |
||||||||||||||||
Interest expense of CIP |
(26.5) |
— |
— |
— |
— |
26.5 |
— |
— |
||||||||||||||||
Other gains/(losses) of CIP, net |
46.4 |
— |
— |
— |
— |
(46.4) |
— |
— |
||||||||||||||||
Income from continuing operations before income taxes |
338.6 |
1.2 |
— |
5.8 |
(3.7) |
(44.3) |
48.6 |
346.2 |
||||||||||||||||
Income tax provision |
(74.2) |
(1.2) |
— |
4.0 |
1.1 |
— |
(17.6) |
(87.9) |
||||||||||||||||
Income from continuing operations, net of income taxes |
264.4 |
— |
— |
9.8 |
(2.6) |
(44.3) |
31.0 |
258.3 |
||||||||||||||||
Income from discontinued operations, net of taxes |
66.4 |
— |
— |
(66.4) |
— |
— |
— |
— |
||||||||||||||||
Net income |
330.8 |
— |
— |
(56.6) |
(2.6) |
(44.3) |
31.0 |
258.3 |
||||||||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities |
(43.4) |
— |
— |
— |
— |
43.2 |
— |
(0.2) |
||||||||||||||||
Net income attributable to common shareholders reconciled to adjusted net income attributable to common shareholders |
$287.4 |
$— |
$— |
($56.6) |
($2.6) |
($1.1) |
$31.0 |
$258.1 |
||||||||||||||||
Operating margin |
23.9 |
% |
Adjusted operating margin |
40.5 |
% |
|||||||||||||||||||
Average diluted shares outstanding |
445.9 |
Average diluted shares outstanding |
445.9 |
|||||||||||||||||||||
Diluted EPS from continuing operations |
$0.50 |
Adjusted diluted EPS |
$0.58 |
|||||||||||||||||||||
Diluted EPS from discontinued operations |
$0.15 |
|||||||||||||||||||||||
Diluted EPS |
$0.64 |
|||||||||||||||||||||||
See pages 23 through 26 for notes to the reconciliation. |
Invesco Ltd. Reconciliation of U.S. GAAP Condensed Consolidated Income Statement to Non-GAAP Condensed Consolidated Income Statement Information (Unaudited, in millions, other than per share amounts) Three months ended September 30, 2013 |
||||||||||||||||||||||||
U.S. GAAP basis |
Proportional consolidation of joint ventures |
Third party distribution, service and advisory expenses |
Acquisition / Disposition related |
Market appreciation / depreciation of deferred compensation awards |
CIP |
Other reconciling items |
Non-GAAP basis |
|||||||||||||||||
Operating revenues: |
||||||||||||||||||||||||
Investment management fees |
$914.4 |
$15.0 |
$— |
$— |
$— |
$8.6 |
$— |
$938.0 |
||||||||||||||||
Service and distribution fees |
220.7 |
— |
— |
— |
— |
— |
— |
220.7 |
||||||||||||||||
Performance fees |
5.1 |
— |
— |
— |
— |
3.4 |
— |
8.5 |
||||||||||||||||
Other |
31.6 |
1.5 |
— |
— |
— |
— |
— |
33.1 |
||||||||||||||||
Third-party distribution, service and advisory |
— |
(3.0) |
(380.9) |
— |
— |
— |
— |
(383.9) |
||||||||||||||||
Total operating revenues reconciled to net revenues |
1,171.8 |
13.5 |
(380.9) |
— |
— |
12.0 |
— |
816.4 |
||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||
Employee compensation |
330.3 |
4.2 |
— |
— |
(6.5) |
— |
0.3 |
328.3 |
||||||||||||||||
Third-party distribution, service and advisory |
380.9 |
— |
(380.9) |
— |
— |
— |
— |
— |
||||||||||||||||
Marketing |
22.6 |
0.9 |
— |
— |
— |
— |
— |
23.5 |
||||||||||||||||
Property, office and technology |
71.9 |
0.9 |
— |
— |
— |
— |
(0.1) |
72.7 |
||||||||||||||||
General and administrative |
80.1 |
1.2 |
— |
(3.8) |
— |
(13.0) |
(0.7) |
63.8 |
||||||||||||||||
Transaction and integration |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||
Total operating expenses |
885.8 |
7.2 |
(380.9) |
(3.8) |
(6.5) |
(13.0) |
(0.5) |
488.3 |
||||||||||||||||
Operating income reconciled to adjusted operating income |
286.0 |
6.3 |
— |
3.8 |
6.5 |
25.0 |
0.5 |
328.1 |
||||||||||||||||
Other income/(expense): |
||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates |
10.3 |
(5.0) |
— |
— |
— |
2.2 |
— |
7.5 |
||||||||||||||||
Interest and dividend income |
2.4 |
0.8 |
— |
— |
(1.0) |
1.0 |
— |
3.2 |
||||||||||||||||
Interest expense |
(9.7) |
— |
— |
— |
— |
— |
— |
(9.7) |
||||||||||||||||
Other gains and losses, net |
3.4 |
— |
— |
— |
(9.2) |
11.8 |
0.5 |
6.5 |
||||||||||||||||
Other income/(loss) of CSIP, net |
(0.6) |
— |
— |
— |
— |
— |
— |
(0.6) |
||||||||||||||||
CIP: |
||||||||||||||||||||||||
Interest income of CIP |
46.5 |
— |
— |
— |
— |
(46.5) |
— |
— |
||||||||||||||||
Interest expense of CIP |
(33.5) |
— |
— |
— |
— |
33.5 |
— |
— |
||||||||||||||||
Other gains/(losses) of CIP, net |
38.2 |
— |
— |
— |
— |
(38.2) |
— |
— |
||||||||||||||||
Income from continuing operations before income taxes |
343.0 |
2.1 |
— |
3.8 |
(3.7) |
(11.2) |
1.0 |
335.0 |
||||||||||||||||
Income tax provision |
(92.9) |
(2.1) |
— |
5.0 |
1.2 |
— |
(0.2) |
(89.0) |
||||||||||||||||
Income from continuing operations, net of income taxes |
250.1 |
— |
— |
8.8 |
(2.5) |
(11.2) |
0.8 |
246.0 |
||||||||||||||||
Loss from discontinued operations, net of taxes |
(1.4) |
— |
— |
1.4 |
— |
— |
— |
— |
||||||||||||||||
Net income |
248.7 |
— |
— |
10.2 |
(2.5) |
(11.2) |
0.8 |
246.0 |
||||||||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities |
(20.6) |
— |
— |
— |
— |
20.6 |
— |
— |
||||||||||||||||
Net income attributable to common shareholders reconciled to adjusted net income attributable to common shareholders |
$228.1 |
$— |
$— |
$10.2 |
($2.5) |
$9.4 |
$0.8 |
$246.0 |
||||||||||||||||
Operating margin |
24.4 |
% |
Adjusted operating margin |
40.2 |
% |
|||||||||||||||||||
Average diluted shares outstanding |
448.8 |
Average diluted shares outstanding |
448.8 |
|||||||||||||||||||||
Diluted EPS form continuing operations |
$0.51 |
Adjusted diluted EPS |
$0.55 |
|||||||||||||||||||||
Diluted EPS from discontinued operations |
— |
|||||||||||||||||||||||
Diluted EPS |
$0.51 |
|||||||||||||||||||||||
See pages 23 through 26 for notes to the reconciliation. |
Invesco Ltd. Reconciliation of U.S. GAAP Condensed Consolidated Income Statement to Non-GAAP Condensed Consolidated Income Statement Information (Unaudited, in millions, other than per share amounts) Three months ended December 31, 2012 |
||||||||||||||||||||||||
U.S. GAAP basis |
Proportional consolidation of joint ventures |
Third party distribution, service and advisory expenses |
Acquisition / Disposition related |
Market appreciation / depreciation of deferred compensation awards |
CIP |
Other reconciling items |
Non-GAAP basis |
|||||||||||||||||
Operating revenues: |
||||||||||||||||||||||||
Investment management fees |
$818.2 |
$10.7 |
$— |
$— |
$— |
$7.4 |
$— |
$836.3 |
||||||||||||||||
Service and distribution fees |
199.5 |
— |
— |
— |
— |
— |
— |
199.5 |
||||||||||||||||
Performance fees |
2.4 |
— |
— |
— |
— |
1.2 |
— |
3.6 |
||||||||||||||||
Other |
26.6 |
0.7 |
— |
— |
— |
— |
— |
27.3 |
||||||||||||||||
Third-party distribution, service and advisory |
— |
(1.4) |
(350.0) |
— |
— |
— |
15.3 |
(336.1) |
||||||||||||||||
Total operating revenues reconciled to net revenues |
1,046.7 |
10.0 |
(350.0) |
— |
— |
8.6 |
15.3 |
730.6 |
||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||
Employee compensation |
322.0 |
3.5 |
— |
— |
(3.3) |
— |
(1.9) |
320.3 |
||||||||||||||||
Third-party distribution, service and advisory |
350.0 |
— |
(350.0) |
— |
— |
— |
— |
— |
||||||||||||||||
Marketing |
23.1 |
0.6 |
— |
— |
— |
— |
(0.1) |
23.6 |
||||||||||||||||
Property, office and technology |
70.1 |
0.8 |
— |
— |
— |
— |
(2.3) |
68.6 |
||||||||||||||||
General and administrative |
73.4 |
1.0 |
— |
(3.9) |
— |
(8.5) |
(2.1) |
59.9 |
||||||||||||||||
Transaction and integration |
2.6 |
— |
— |
(2.6) |
— |
— |
— |
— |
||||||||||||||||
Total operating expenses |
841.2 |
5.9 |
(350.0) |
(6.5) |
(3.3) |
(8.5) |
(6.4) |
472.4 |
||||||||||||||||
Operating income reconciled to adjusted operating income |
205.5 |
4.1 |
— |
6.5 |
3.3 |
17.1 |
21.7 |
258.2 |
||||||||||||||||
Other income/(expense): |
||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates |
7.9 |
(4.7) |
— |
— |
— |
(0.4) |
— |
2.8 |
||||||||||||||||
Interest and dividend income |
2.7 |
0.6 |
— |
— |
(1.2) |
2.0 |
— |
4.1 |
||||||||||||||||
Interest expense |
(12.7) |
— |
— |
— |
— |
— |
— |
(12.7) |
||||||||||||||||
Other gains and losses, net |
(21.0) |
— |
— |
— |
(2.3) |
— |
22.9 |
(0.4) |
||||||||||||||||
CIP: |
||||||||||||||||||||||||
Interest income of CIP |
52.1 |
— |
— |
— |
— |
(52.1) |
— |
— |
||||||||||||||||
Interest expense of CIP |
(33.9) |
— |
— |
— |
— |
33.9 |
— |
— |
||||||||||||||||
Other gains/(losses) of CIP, net |
(27.8) |
— |
— |
— |
— |
27.8 |
— |
— |
||||||||||||||||
Income from continuing operations before income taxes |
172.8 |
— |
— |
6.5 |
(0.2) |
28.3 |
44.6 |
252.0 |
||||||||||||||||
Income tax provision |
(55.6) |
— |
— |
3.6 |
— |
— |
(10.6) |
(62.6) |
||||||||||||||||
Income from continuing operations, net of income taxes |
117.2 |
— |
— |
10.1 |
(0.2) |
28.3 |
34.0 |
189.4 |
||||||||||||||||
Income from discontinued operations, net of taxes |
10.8 |
— |
— |
(10.8) |
— |
— |
— |
— |
||||||||||||||||
Net income |
128.0 |
— |
— |
(0.7) |
(0.2) |
28.3 |
34.0 |
189.4 |
||||||||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities |
30.7 |
— |
— |
— |
— |
(30.7) |
— |
— |
||||||||||||||||
Net income attributable to common shareholders reconciled to adjusted net income attributable to common shareholders |
$158.7 |
$— |
$— |
($0.7) |
($0.2) |
($2.4) |
$34.0 |
$189.4 |
||||||||||||||||
Operating margin |
19.6 |
% |
Adjusted operating margin |
35.3 |
% |
|||||||||||||||||||
Average diluted shares outstanding |
451.2 |
Average diluted shares outstanding |
451.2 |
|||||||||||||||||||||
Diluted EPS form continuing operations |
$0.33 |
Adjusted diluted EPS |
$0.42 |
|||||||||||||||||||||
Diluted EPS from discontinued operations |
$0.02 |
|||||||||||||||||||||||
Diluted EPS |
$0.35 |
|||||||||||||||||||||||
See pages 23 through 26 for notes to the reconciliation. |
Invesco Ltd. Reconciliation of U.S. GAAP Condensed Consolidated Income Statement to Non-GAAP Condensed Consolidated Income Statement Information (Unaudited, in millions, other than per share amounts) Year ended December 31, 2013 |
|||||||||||||||||||||||||
U.S. GAAP basis |
Proportional consolidation of joint ventures |
Third party distribution, service and advisory expenses |
Acquisition / Disposition related |
Market appreciation / depreciation of deferred compensation awards |
CIP |
Other reconciling items |
Non-GAAP basis |
||||||||||||||||||
Operating revenues: |
|||||||||||||||||||||||||
Investment management fees |
$3,599.6 |
$57.9 |
$— |
$— |
$— |
$27.0 |
$4.3 |
$3,688.8 |
|||||||||||||||||
Service and distribution fees |
872.8 |
— |
— |
— |
— |
— |
— |
872.8 |
|||||||||||||||||
Performance fees |
55.9 |
— |
— |
— |
— |
11.3 |
— |
67.2 |
|||||||||||||||||
Other |
116.3 |
5.2 |
— |
— |
— |
(0.4) |
— |
121.1 |
|||||||||||||||||
Third-party distribution, service and advisory |
— |
(11.4) |
(1,489.2) |
— |
— |
— |
2.7 |
(1,497.9) |
|||||||||||||||||
Total operating revenues reconciled to net revenues |
4,644.6 |
51.7 |
(1,489.2) |
— |
— |
37.9 |
7.0 |
3,252.0 |
|||||||||||||||||
Operating expenses: |
|||||||||||||||||||||||||
Employee compensation |
1,329.3 |
17.9 |
— |
(2.4) |
(25.1) |
— |
(1.6) |
1,318.1 |
|||||||||||||||||
Third-party distribution, service and advisory |
1,489.2 |
— |
(1,489.2) |
— |
— |
— |
— |
— |
|||||||||||||||||
Marketing |
98.6 |
3.6 |
— |
— |
— |
— |
(0.2) |
102.0 |
|||||||||||||||||
Property, office and technology |
292.8 |
3.5 |
— |
— |
— |
— |
(14.0) |
282.3 |
|||||||||||||||||
General and administrative |
311.3 |
5.4 |
— |
(17.4) |
— |
(35.1) |
(6.7) |
257.5 |
|||||||||||||||||
Transaction and integration |
3.2 |
— |
— |
(3.2) |
— |
— |
— |
— |
|||||||||||||||||
Total operating expenses |
3,524.4 |
30.4 |
(1,489.2) |
(23.0) |
(25.1) |
(35.1) |
(22.5) |
1,959.9 |
|||||||||||||||||
Operating income reconciled to adjusted operating income |
1,120.2 |
21.3 |
— |
23.0 |
25.1 |
73.0 |
29.5 |
1,292.1 |
|||||||||||||||||
Other income/(expense): |
|||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates |
35.5 |
(18.0) |
— |
— |
— |
2.5 |
— |
20.0 |
|||||||||||||||||
Interest and dividend income |
10.0 |
3.0 |
— |
— |
(4.0) |
5.5 |
— |
14.5 |
|||||||||||||||||
Interest expense |
(44.6) |
— |
— |
— |
— |
— |
— |
(44.6) |
|||||||||||||||||
Other gains and losses, net |
2.6 |
— |
— |
— |
(38.5) |
11.6 |
31.3 |
7.0 |
|||||||||||||||||
Other income/(loss) of CSIP, net |
2.9 |
— |
— |
— |
— |
— |
— |
2.9 |
|||||||||||||||||
CIP: |
|||||||||||||||||||||||||
Interest income of CIP |
190.0 |
— |
— |
— |
— |
(190.0) |
— |
— |
|||||||||||||||||
Interest expense of CIP |
(123.3) |
— |
— |
— |
— |
123.3 |
— |
— |
|||||||||||||||||
Other gains/(losses) of CIP, net |
61.9 |
— |
— |
— |
— |
(61.9) |
— |
— |
|||||||||||||||||
Income from continuing operations before income taxes |
1,255.2 |
6.3 |
— |
23.0 |
(17.4) |
(36.0) |
60.8 |
1,291.9 |
|||||||||||||||||
Income tax provision |
(336.9) |
(6.3) |
— |
17.7 |
4.8 |
— |
(20.1) |
(340.8) |
|||||||||||||||||
Income from continuing operations, net of income taxes |
918.3 |
— |
— |
40.7 |
(12.6) |
(36.0) |
40.7 |
951.1 |
|||||||||||||||||
Income from discontinued operations, net of taxes |
64.5 |
— |
— |
(64.5) |
— |
— |
— |
— |
|||||||||||||||||
Net income |
982.8 |
— |
— |
(23.8) |
(12.6) |
(36.0) |
40.7 |
951.1 |
|||||||||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities |
(42.5) |
— |
— |
— |
— |
44.7 |
— |
2.2 |
|||||||||||||||||
Net income attributable to common shareholders reconciled to adjusted net income attributable to common shareholders |
$940.3 |
$— |
$— |
($23.8) |
($12.6) |
$8.7 |
$40.7 |
$953.3 |
|||||||||||||||||
Operating margin |
24.1 |
% |
Adjusted operating margin |
39.7 |
% |
||||||||||||||||||||
Average diluted shares outstanding |
448.5 |
Average diluted shares outstanding |
448.5 |
||||||||||||||||||||||
Diluted EPS form continuing operations |
$1.95 |
Adjusted diluted EPS |
$ |
2.13 |
|||||||||||||||||||||
Diluted EPS from discontinued operations |
$0.14 |
||||||||||||||||||||||||
Diluted EPS |
$2.10 |
||||||||||||||||||||||||
See pages 23 through 26 for notes to the reconciliation. |
Invesco Ltd. Reconciliation of U.S. GAAP Condensed Consolidated Income Statement to Non-GAAP Condensed Consolidated Income Statement Information (Unaudited, in millions, other than per share amounts) Year ended December 31, 2012 |
||||||||||||||||||||||||||||
U.S. GAAP basis |
Proportional consolidation of joint ventures |
Third party distribution, service and advisory expenses |
Acquisition / Disposition related |
Market appreciation / depreciation of deferred compensation awards |
CIP |
Other reconciling items |
Non-GAAP basis |
|||||||||||||||||||||
Operating revenues: |
||||||||||||||||||||||||||||
Investment management fees |
$3,127.8 |
$43.6 |
$— |
$— |
$— |
$38.6 |
$— |
$3,210.0 |
||||||||||||||||||||
Service and distribution fees |
771.6 |
— |
— |
— |
— |
— |
— |
771.6 |
||||||||||||||||||||
Performance fees |
41.4 |
— |
— |
— |
— |
2.4 |
— |
43.8 |
||||||||||||||||||||
Other |
109.6 |
1.2 |
— |
— |
— |
— |
— |
110.8 |
||||||||||||||||||||
Third-party distribution, service and advisory |
— |
(7.3) |
(1,308.2) |
— |
— |
— |
15.3 |
(1,300.2) |
||||||||||||||||||||
Total operating revenues reconciled to net revenues |
4,050.4 |
37.5 |
(1,308.2) |
— |
— |
41.0 |
15.3 |
2,836.0 |
||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||
Employee compensation |
1,228.0 |
11.4 |
— |
— |
(14.3) |
— |
(5.6) |
1,219.5 |
||||||||||||||||||||
Third-party distribution, service and advisory |
1,308.2 |
— |
(1,308.2) |
— |
— |
— |
— |
— |
||||||||||||||||||||
Marketing |
102.2 |
2.7 |
— |
— |
— |
— |
(1.6) |
103.3 |
||||||||||||||||||||
Property, office and technology |
265.1 |
3.3 |
— |
— |
— |
— |
(5.8) |
262.6 |
||||||||||||||||||||
General and administrative |
296.1 |
4.4 |
— |
(23.2) |
— |
(31.5) |
(7.3) |
238.5 |
||||||||||||||||||||
Transaction and integration |
8.2 |
— |
— |
(8.2) |
— |
— |
— |
— |
||||||||||||||||||||
Total operating expenses |
3,207.8 |
21.8 |
(1,308.2) |
(31.4) |
(14.3) |
(31.5) |
(20.3) |
1,823.9 |
||||||||||||||||||||
Operating income reconciled to adjusted operating income |
842.6 |
15.7 |
— |
31.4 |
14.3 |
72.5 |
35.6 |
1,012.1 |
||||||||||||||||||||
Other income/(expense): |
||||||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates |
29.7 |
(18.1) |
— |
3.5 |
— |
(0.5) |
— |
14.6 |
||||||||||||||||||||
Interest and dividend income |
9.8 |
2.4 |
— |
— |
(4.7) |
12.3 |
— |
19.8 |
||||||||||||||||||||
Interest expense |
(52.3) |
— |
— |
— |
— |
— |
— |
(52.3) |
||||||||||||||||||||
Other gains and losses, net |
8.3 |
— |
— |
(11.8) |
(19.7) |
8.7 |
24.3 |
9.8 |
||||||||||||||||||||
CIP: |
||||||||||||||||||||||||||||
Interest income of CIP |
258.5 |
— |
— |
— |
— |
(258.5) |
— |
— |
||||||||||||||||||||
Interest expense of CIP |
(168.3) |
— |
— |
— |
— |
168.3 |
— |
— |
||||||||||||||||||||
Other gains/(losses) of CIP, net |
(97.7) |
— |
— |
— |
— |
97.7 |
— |
— |
||||||||||||||||||||
Income from continuing operations before income taxes |
830.6 |
— |
— |
23.1 |
(10.1) |
100.5 |
59.9 |
1,004.0 |
||||||||||||||||||||
Income tax provision |
(261.4) |
— |
— |
16.9 |
2.7 |
— |
(13.6) |
(255.4) |
||||||||||||||||||||
Income from continuing operations, net of income taxes |
569.2 |
— |
— |
40.0 |
(7.4) |
100.5 |
46.3 |
748.6 |
||||||||||||||||||||
Income from discontinued operations, net of taxes |
18.1 |
— |
— |
(18.1) |
— |
— |
— |
— |
||||||||||||||||||||
Net income |
587.3 |
— |
— |
21.9 |
(7.4) |
100.5 |
46.3 |
748.6 |
||||||||||||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities |
89.8 |
— |
— |
— |
— |
(89.8) |
— |
— |
||||||||||||||||||||
Net income attributable to common shareholders reconciled to adjusted net income attributable to common shareholders |
$677.1 |
$— |
$— |
$21.9 |
($7.4) |
$10.7 |
$46.3 |
$748.6 |
||||||||||||||||||||
Operating margin |
20.8% |
Adjusted operating margin |
35.7% |
|||||||||||||||||||||||||
Average diluted shares outstanding |
453.8 |
Average diluted shares outstanding |
453.8 |
|||||||||||||||||||||||||
Diluted EPS form continuing operations |
$1.45 |
Adjusted diluted EPS |
$1.65 |
|||||||||||||||||||||||||
Diluted EPS from discontinued operations |
$0.04 |
|||||||||||||||||||||||||||
Diluted EPS |
$1.49 |
|||||||||||||||||||||||||||
See pages 23 through 26 for notes to the reconciliation. |
Invesco Ltd. Condensed Consolidated Balance Sheet Information Excluding CIP (a non-GAAP presentation, unaudited, in millions) |
|||||||
December 31, 2013 |
December 31, 2012 |
||||||
ADJUSTED ASSETS |
|||||||
Cash and cash equivalents |
$1,331.2 |
$835.5 |
|||||
Unsettled fund receivables |
932.4 |
550.1 |
|||||
Accounts receivable |
504.2 |
453.8 |
|||||
Investments |
895.0 |
677.3 |
|||||
Assets of consolidated sponsored investment products (CSIP) |
108.5 |
— |
|||||
Assets held for policyholders |
1,416.0 |
1,153.6 |
|||||
Prepaid assets |
101.4 |
99.9 |
|||||
Other assets |
174.7 |
146.8 |
|||||
Deferred tax asset, net |
7.4 |
38.4 |
|||||
Property and equipment, net |
350.8 |
349.6 |
|||||
Intangible assets, net |
1,263.7 |
1,287.7 |
|||||
Goodwill |
6,867.3 |
7,048.2 |
|||||
Total adjusted assets |
$13,952.6 |
$12,640.9 |
|||||
ADJUSTED LIABILITIES |
|||||||
Accrued compensation and benefits |
$676.4 |
$609.8 |
|||||
Accounts payable and accrued expenses |
763.1 |
635.3 |
|||||
Policyholder payables |
1,416.0 |
1,153.6 |
|||||
Unsettled fund payables |
882.0 |
552.5 |
|||||
Long-term debt |
1,588.6 |
1,186.0 |
|||||
Deferred tax liabilities, net |
323.6 |
311.4 |
|||||
Total adjusted liabilities |
5,649.7 |
4,448.6 |
|||||
ADJUSTED EQUITY |
|||||||
Equity attributable to common shareholders: |
|||||||
Common shares |
98.1 |
98.1 |
|||||
Additional paid-in-capital |
6,100.8 |
6,141.0 |
|||||
Treasury shares |
(1,700.4) |
(1,382.9) |
|||||
Retained earnings |
3,349.4 |
2,780.1 |
|||||
Accumulated other comprehensive income, net of tax |
440.6 |
551.4 |
|||||
Total adjusted equity attributable to common shareholders |
8,288.5 |
8,187.7 |
|||||
Adjusted equity attributable to nonredeemable noncontrolling interests in consolidated entities |
14.4 |
4.6 |
|||||
Total adjusted equity |
8,302.9 |
8,192.3 |
|||||
Total adjusted liabilities and equity |
$13,952.6 |
$12,640.9 |
|||||
Invesco Ltd. U.S. GAAP Condensed Consolidated Balance Sheets (Unaudited, in millions) |
|||||||
December 31, 2013 |
December 31, 2012 |
||||||
ASSETS |
|||||||
Cash and cash equivalents |
$1,331.2 |
$835.5 |
|||||
Unsettled fund receivables |
932.4 |
550.1 |
|||||
Accounts receivable |
500.8 |
449.4 |
|||||
Investments |
839.7 |
610.7 |
|||||
Assets of consolidated sponsored investment products (CSIP) |
108.5 |
— |
|||||
Assets of consolidated investment products (CIP): |
|||||||
Cash and cash equivalents of CIP |
583.6 |
287.8 |
|||||
Accounts receivable of CIP |
58.3 |
84.1 |
|||||
Investments of CIP |
4,734.7 |
4,550.6 |
|||||
Assets held for policyholders |
1,416.0 |
1,153.6 |
|||||
Prepaid assets |
101.4 |
99.9 |
|||||
Other assets |
174.7 |
146.8 |
|||||
Deferred tax asset, net |
7.4 |
38.4 |
|||||
Property and equipment, net |
350.8 |
349.6 |
|||||
Intangible assets, net |
1,263.7 |
1,287.7 |
|||||
Goodwill |
6,867.3 |
7,048.2 |
|||||
Total assets |
$19,270.5 |
$17,492.4 |
|||||
LIABILITIES |
|||||||
Accrued compensation and benefits |
$676.4 |
$609.8 |
|||||
Accounts payable and accrued expenses |
763.1 |
626.4 |
|||||
Liabilities of CIP: |
|||||||
Debt of CIP |
4,181.7 |
3,899.4 |
|||||
Other liabilities of CIP |
461.8 |
104.3 |
|||||
Policyholder payables |
1,416.0 |
1,153.6 |
|||||
Unsettled fund payables |
882.0 |
552.5 |
|||||
Long-term debt |
1,588.6 |
1,186.0 |
|||||
Deferred tax liabilities, net |
323.6 |
311.4 |
|||||
Total liabilities |
10,293.2 |
8,443.4 |
|||||
EQUITY |
|||||||
Equity attributable to common shareholders: |
|||||||
Common shares |
98.1 |
98.1 |
|||||
Additional paid-in-capital |
6,100.8 |
6,141.0 |
|||||
Treasury shares |
(1,700.4) |
(1,382.9) |
|||||
Retained earnings |
3,361.9 |
2,801.3 |
|||||
Retained earnings appropriated for investors in CIP |
104.3 |
128.8 |
|||||
Accumulated other comprehensive income, net of tax |
427.9 |
530.5 |
|||||
Total equity attributable to common shareholders |
8,392.6 |
8,316.8 |
|||||
Equity attributable to nonredeemable noncontrolling interests in consolidated entities |
584.7 |
732.2 |
|||||
Total equity |
8,977.3 |
9,049.0 |
|||||
Total liabilities and equity |
$19,270.5 |
$17,492.4 |
|||||
Invesco Ltd. Reconciliations of Condensed Consolidated Balance Sheet Information Excluding CIP to U.S. GAAP Condensed Consolidated Balance Sheets (unaudited, in millions) |
|||||||||||||||||||||||||||||||||
December 31, 2013 |
December 31, 2012 |
||||||||||||||||||||||||||||||||
Before Consolidation (non-GAAP) |
Impact of Consolidation |
Total (U.S. GAAP) |
Before Consolidation (non-GAAP) |
Impact of Consolidation |
Total (U.S. GAAP) |
||||||||||||||||||||||||||||
ASSETS |
|||||||||||||||||||||||||||||||||
Cash and cash equivalents |
$1,331.2 |
$— |
$1,331.2 |
$835.5 |
$— |
$835.5 |
|||||||||||||||||||||||||||
Unsettled fund receivables |
932.4 |
— |
932.4 |
550.1 |
— |
550.1 |
|||||||||||||||||||||||||||
Accounts receivable |
504.2 |
(3.4) |
500.8 |
453.8 |
(4.4) |
449.4 |
|||||||||||||||||||||||||||
Investments |
895.0 |
(55.3) |
839.7 |
677.3 |
(66.6) |
610.7 |
|||||||||||||||||||||||||||
Assets of CSIP |
108.5 |
— |
108.5 |
— |
— |
— |
|||||||||||||||||||||||||||
Assets of CIP: |
|||||||||||||||||||||||||||||||||
Cash and cash equivalents of CIP |
— |
583.6 |
583.6 |
— |
287.8 |
287.8 |
|||||||||||||||||||||||||||
Accounts receivable of CIP |
— |
58.3 |
58.3 |
— |
84.1 |
84.1 |
|||||||||||||||||||||||||||
Investments of CIP |
— |
4,734.7 |
4,734.7 |
— |
4,550.6 |
4,550.6 |
|||||||||||||||||||||||||||
Assets held for policyholders |
1,416.0 |
— |
1,416.0 |
1,153.6 |
— |
1,153.6 |
|||||||||||||||||||||||||||
Prepaid assets |
101.4 |
— |
101.4 |
99.9 |
— |
99.9 |
|||||||||||||||||||||||||||
Other assets |
174.7 |
— |
174.7 |
146.8 |
— |
146.8 |
|||||||||||||||||||||||||||
Deferred tax asset, net |
7.4 |
— |
7.4 |
38.4 |
— |
38.4 |
|||||||||||||||||||||||||||
Property and equipment, net |
350.8 |
— |
350.8 |
349.6 |
— |
349.6 |
|||||||||||||||||||||||||||
Intangible assets, net |
1,263.7 |
— |
1,263.7 |
1,287.7 |
— |
1,287.7 |
|||||||||||||||||||||||||||
Goodwill |
6,867.3 |
— |
6,867.3 |
7,048.2 |
— |
7,048.2 |
|||||||||||||||||||||||||||
Total assets |
$13,952.6 |
$5,317.9 |
$19,270.5 |
$12,640.9 |
$4,851.5 |
$17,492.4 |
|||||||||||||||||||||||||||
LIABILITIES |
|||||||||||||||||||||||||||||||||
Accrued compensation and benefits |
$676.4 |
$— |
$676.4 |
$609.8 |
$— |
$609.8 |
|||||||||||||||||||||||||||
Accounts payable and accrued expenses |
763.1 |
— |
763.1 |
635.3 |
(8.9) |
626.4 |
|||||||||||||||||||||||||||
Liabilities of CIP: |
|||||||||||||||||||||||||||||||||
Debt of CIP |
— |
4,181.7 |
4,181.7 |
— |
3,899.4 |
3,899.4 |
|||||||||||||||||||||||||||
Other liabilities of CIP |
— |
461.8 |
461.8 |
— |
104.3 |
104.3 |
|||||||||||||||||||||||||||
Policyholder payables |
1,416.0 |
— |
1,416.0 |
1,153.6 |
— |
1,153.6 |
|||||||||||||||||||||||||||
Unsettled fund payables |
882.0 |
— |
882.0 |
552.5 |
— |
552.5 |
|||||||||||||||||||||||||||
Long-term debt |
1,588.6 |
— |
1,588.6 |
1,186.0 |
— |
1,186.0 |
|||||||||||||||||||||||||||
Deferred tax liabilities, net |
323.6 |
— |
323.6 |
311.4 |
— |
311.4 |
|||||||||||||||||||||||||||
Total liabilities |
5,649.7 |
4,643.5 |
10,293.2 |
4,448.6 |
3,994.8 |
8,443.4 |
|||||||||||||||||||||||||||
EQUITY |
|||||||||||||||||||||||||||||||||
Equity attributable to common shareholders: |
|||||||||||||||||||||||||||||||||
Common shares |
98.1 |
— |
98.1 |
98.1 |
— |
98.1 |
|||||||||||||||||||||||||||
Additional paid-in-capital |
6,100.8 |
— |
6,100.8 |
6,141.0 |
— |
6,141.0 |
|||||||||||||||||||||||||||
Treasury shares |
(1,700.4) |
— |
(1,700.4) |
(1,382.9) |
— |
(1,382.9) |
|||||||||||||||||||||||||||
Retained earnings |
3,349.4 |
12.5 |
3,361.9 |
2,780.1 |
21.2 |
2,801.3 |
|||||||||||||||||||||||||||
Retained earnings appropriated for investors in CIP |
— |
104.3 |
104.3 |
— |
128.8 |
128.8 |
|||||||||||||||||||||||||||
Accumulated other comprehensive income, net of tax |
440.6 |
(12.7) |
427.9 |
551.4 |
(20.9) |
530.5 |
|||||||||||||||||||||||||||
Total equity attributable to common shareholders |
8,288.5 |
104.1 |
8,392.6 |
8,187.7 |
129.1 |
8,316.8 |
|||||||||||||||||||||||||||
Equity attributable to nonredeemable noncontrolling interests in consolidated entities |
14.4 |
570.3 |
584.7 |
4.6 |
727.6 |
732.2 |
|||||||||||||||||||||||||||
Total equity |
8,302.9 |
674.4 |
8,977.3 |
8,192.3 |
856.7 |
9,049.0 |
|||||||||||||||||||||||||||
Total liabilities and equity |
$13,952.6 |
$5,317.9 |
$19,270.5 |
$12,640.9 |
$4,851.5 |
$17,492.4 |
|||||||||||||||||||||||||||
See pages 23 through 26 for notes to the reconciliation. |
Invesco Ltd. Condensed Consolidated Cash Flow Statement Information Excluding CIP (a non-GAAP presentation, unaudited, in millions) |
|||||||||
Year ended December 31, |
|||||||||
2013 |
2012 |
||||||||
Adjusted operating activities: |
|||||||||
U.S. GAAP net income |
$982.8 |
$587.3 |
|||||||
Consolidated investment product (CIP) net (income)/loss |
(36.0) |
100.6 |
|||||||
Net income adjusted to remove impact of CIP |
946.8 |
687.9 |
|||||||
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: |
|||||||||
Amortization and depreciation |
88.4 |
95.0 |
|||||||
Share-based compensation expense |
133.1 |
136.4 |
|||||||
(Gain)/loss on disposals of business, property and equipment, net |
(64.8) |
(0.9) |
|||||||
Other gains and losses, net |
(48.2) |
(17.0) |
|||||||
Call premium on debt extinguishment |
— |
(23.0) |
|||||||
Equity in earnings of unconsolidated affiliates |
(38.0) |
(29.3) |
|||||||
Dividends from unconsolidated affiliates |
16.5 |
15.6 |
|||||||
Changes in operating assets and liabilities: |
|||||||||
(Increase)/decrease in cash held by CSIP |
(10.1) |
— |
|||||||
(Purchase)/sale of trading investments, net |
5.4 |
(7.2) |
|||||||
(Increase)/decrease in receivables |
(615.3) |
97.4 |
|||||||
Increase/(decrease) in payables |
650.5 |
(82.8) |
|||||||
Adjusted net cash provided by/(used in) operating activities |
1,064.3 |
872.1 |
|||||||
Adjusted investing activities: |
|||||||||
Purchase of property and equipment |
(88.2) |
(99.3) |
|||||||
Disposal of property and equipment |
— |
0.6 |
|||||||
Purchase of available-for-sale investments |
(199.3) |
(97.8) |
|||||||
Sale of available-for-sale investments |
101.6 |
68.4 |
|||||||
Purchase of investments by CSIP |
(116.5) |
— |
|||||||
Sale of investments by CSIP |
66.9 |
— |
|||||||
Purchase of other investments |
(239.3) |
(126.4) |
|||||||
Sale of other investments |
94.3 |
83.6 |
|||||||
Returns of capital and distributions from unconsolidated partnership investments |
38.2 |
32.0 |
|||||||
Acquisition earn out payments |
(1.9) |
(37.2) |
|||||||
Sale of management contracts |
— |
16.4 |
|||||||
Sale of business |
137.0 |
— |
|||||||
Adjusted net cash provided by/(used in) investing activities |
(207.2) |
(159.7) |
|||||||
Adjusted financing activities: |
|||||||||
Proceeds from exercises of share options |
17.9 |
23.0 |
|||||||
Purchases of treasury shares |
(470.5) |
(265.0) |
|||||||
Dividends paid |
(379.7) |
(289.0) |
|||||||
Excess tax benefits from share-based compensation |
21.6 |
12.7 |
|||||||
Overdraft on unsettled fund account |
35.7 |
— |
|||||||
Capital invested into CSIP |
3.9 |
— |
|||||||
Net borrowings/(repayments) under credit facility |
(586.5) |
47.5 |
|||||||
Net proceeds from issuance of debt |
981.5 |
595.1 |
|||||||
Repayments of senior notes |
— |
(745.7) |
|||||||
Adjusted net cash provided by/(used in) financing activities |
(376.1) |
(621.4) |
|||||||
Increase /(decrease) in cash and cash equivalents |
481.0 |
91.0 |
|||||||
Foreign exchange movement on cash and cash equivalents |
14.7 |
17.1 |
|||||||
Cash and cash equivalents, beginning of year |
835.5 |
727.4 |
|||||||
Cash and cash equivalents, end of year |
$1,331.2 |
$835.5 |
|||||||
Invesco Ltd. U.S. GAAP Condensed Consolidated Statements of Cash Flows (Unaudited, in millions) |
|||||||||
Year ended December 31, |
|||||||||
2013 |
2012 |
||||||||
Operating activities: |
|||||||||
Net income |
$982.8 |
$587.3 |
|||||||
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: |
|||||||||
Amortization and depreciation |
88.4 |
95.0 |
|||||||
Share-based compensation expense |
133.1 |
136.4 |
|||||||
(Gain)/loss on disposal of business, property and equipment, net |
(64.8) |
(0.9) |
|||||||
Other gains and losses, net |
(36.4) |
(8.3) |
|||||||
Call premium on debt extinguishment |
— |
(23.0) |
|||||||
Other (gains)/losses of CIP, net |
(61.9) |
97.7 |
|||||||
Equity in earnings of unconsolidated affiliates |
(35.5) |
(29.7) |
|||||||
Dividends from unconsolidated affiliates |
16.5 |
15.6 |
|||||||
Changes in operating assets and liabilities: |
|||||||||
(Increase)/decrease in cash held by CIP |
(298.9) |
(36.2) |
|||||||
(Increase)/decrease in cash held by CSIP |
(10.1) |
— |
|||||||
(Purchase)/sale of trading investments, net |
5.4 |
(7.2) |
|||||||
(Increase)/decrease in receivables |
(593.1) |
113.8 |
|||||||
Increase/(decrease) in payables |
654.7 |
(121.2) |
|||||||
Net cash provided by/(used in) operating activities |
780.2 |
819.3 |
|||||||
Investing activities: |
|||||||||
Purchase of property and equipment |
(88.2) |
(99.3) |
|||||||
Disposal of property and equipment |
— |
0.6 |
|||||||
Purchase of available-for-sale investments |
(132.3) |
(85.9) |
|||||||
Sale of available-for-sale investments |
26.9 |
50.6 |
|||||||
Purchase of investments by CIP |
(4,465.4) |
(3,252.0) |
|||||||
Sale of investments by CIP |
4,440.4 |
3,346.8 |
|||||||
Purchase of investments by CSIP |
(116.5) |
— |
|||||||
Sale of investments by CSIP |
66.9 |
— |
|||||||
Purchase of other investments |
(239.1) |
(126.0) |
|||||||
Sale of other investments |
94.3 |
83.6 |
|||||||
Returns of capital and distributions from unconsolidated partnership investments |
38.0 |
20.0 |
|||||||
Acquisition earn-out payments |
(1.9) |
(37.2) |
|||||||
Sale of management contracts |
— |
16.4 |
|||||||
Sale of business |
137.0 |
— |
|||||||
Net cash provided by/(used in) investing activities |
(239.9) |
(82.4) |
|||||||
Financing activities: |
|||||||||
Proceeds from exercises of share options |
17.9 |
23.0 |
|||||||
Purchases of treasury shares |
(470.5) |
(265.0) |
|||||||
Dividends paid |
(379.7) |
(289.0) |
|||||||
Excess tax benefits from share-based compensation |
21.6 |
12.7 |
|||||||
Overdraft on unsettled fund account |
35.7 |
— |
|||||||
Capital invested into CIP |
17.7 |
20.0 |
|||||||
Capital distributed by CIP |
(191.5) |
(277.0) |
|||||||
Capital invested into CSIP |
3.9 |
— |
|||||||
Net borrowings of debt of CIP |
1,365.4 |
835.2 |
|||||||
Net repayments of debt of CIP |
(874.8) |
(602.7) |
|||||||
Net borrowings/(repayments) under credit facility |
(586.5) |
47.5 |
|||||||
Net proceeds from issuance of senior notes |
981.5 |
595.1 |
|||||||
Repayments of senior notes |
— |
(745.7) |
|||||||
Net cash provided by/(used in) financing activities |
(59.3) |
(645.9) |
|||||||
Increase/(decrease) in cash and cash equivalents |
481.0 |
91.0 |
|||||||
Foreign exchange movement on cash and cash equivalents |
14.7 |
17.1 |
|||||||
Cash and cash equivalents, beginning of year |
835.5 |
727.4 |
|||||||
Cash and cash equivalents, end of year |
$1,331.2 |
$835.5 |
|||||||
Invesco Ltd. Reconciliations of Condensed Consolidated Cash Flow Information Excluding CIP to U.S. GAAP Condensed Consolidated Statements of Cash Flows (unaudited, in millions) |
|||||||||||||||||||||||||||||||||
Year ended December 31, 2013 |
Year ended December 31, 2012 |
||||||||||||||||||||||||||||||||
Before Consolidation (non-GAAP) |
Impact of Consolidation |
Total (U.S. GAAP) |
Before Consolidation (non-GAAP) |
Impact of Consolidation |
Total (U.S. GAAP) |
||||||||||||||||||||||||||||
Operating activities: |
|||||||||||||||||||||||||||||||||
Net income |
$946.8 |
$36.0 |
$982.8 |
$687.9 |
($100.6) |
$587.3 |
|||||||||||||||||||||||||||
Amortization and depreciation |
88.4 |
— |
88.4 |
95.0 |
— |
95.0 |
|||||||||||||||||||||||||||
Share-based compensation expense |
133.1 |
— |
133.1 |
136.4 |
— |
136.4 |
|||||||||||||||||||||||||||
(Gains)/losses on disposals of business, property and equipment, net |
(64.8) |
— |
(64.8) |
(0.9) |
— |
(0.9) |
|||||||||||||||||||||||||||
Other gains and losses, net |
(48.2) |
11.8 |
(36.4) |
(17.0) |
8.7 |
(8.3) |
|||||||||||||||||||||||||||
Call premium on debt extinguishment |
— |
— |
— |
(23.0) |
— |
(23.0) |
|||||||||||||||||||||||||||
Other (gains)/losses of CIP, net |
— |
(61.9) |
(61.9) |
— |
97.7 |
97.7 |
|||||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates |
(38.0) |
2.5 |
(35.5) |
(29.3) |
(0.4) |
(29.7) |
|||||||||||||||||||||||||||
Dividends from unconsolidated affiliates |
16.5 |
— |
16.5 |
15.6 |
— |
15.6 |
|||||||||||||||||||||||||||
Changes in operating assets and liabilities: |
|||||||||||||||||||||||||||||||||
(Increase)/decrease in cash held by CIP |
— |
(298.9) |
(298.9) |
— |
(36.2) |
(36.2) |
|||||||||||||||||||||||||||
(Increase)/decrease in cash held by CSIP |
(10.1) |
— |
(10.1) |
— |
— |
— |
|||||||||||||||||||||||||||
(Purchase)/sale of trading investments |
5.4 |
— |
5.4 |
(7.2) |
— |
(7.2) |
|||||||||||||||||||||||||||
(Increase)/decrease in receivables |
(615.3) |
22.2 |
(593.1) |
97.4 |
16.4 |
113.8 |
|||||||||||||||||||||||||||
Increase/(decrease) in payables |
650.5 |
4.2 |
654.7 |
(82.8) |
(38.4) |
(121.2) |
|||||||||||||||||||||||||||
Net cash provided by/(used in) operating activities |
1,064.3 |
(284.1) |
780.2 |
872.1 |
(52.8) |
819.3 |
|||||||||||||||||||||||||||
Investing activities: |
|||||||||||||||||||||||||||||||||
Purchase of property and equipment |
(88.2) |
— |
(88.2) |
(99.3) |
— |
(99.3) |
|||||||||||||||||||||||||||
Disposal of property and equipment |
— |
— |
— |
0.6 |
— |
0.6 |
|||||||||||||||||||||||||||
Purchase of available-for-sale investments |
(199.3) |
67.0 |
(132.3) |
(97.8) |
11.9 |
(85.9) |
|||||||||||||||||||||||||||
Sale of available-for-sale investments |
101.6 |
(74.7) |
26.9 |
68.4 |
(17.8) |
50.6 |
|||||||||||||||||||||||||||
Purchase of investments by CIP |
— |
(4,465.4) |
(4,465.4) |
— |
(3,252.0) |
(3,252.0) |
|||||||||||||||||||||||||||
Sale of investments by CIP |
— |
4,440.4 |
4,440.4 |
— |
3,346.8 |
3,346.8 |
|||||||||||||||||||||||||||
Purchase of investments by CSIP |
(116.5) |
— |
(116.5) |
— |
— |
— |
|||||||||||||||||||||||||||
Sale of investments by CSIP |
66.9 |
— |
66.9 |
— |
— |
— |
|||||||||||||||||||||||||||
Purchase of other investments |
(239.3) |
0.2 |
(239.1) |
(126.4) |
0.4 |
(126.0) |
|||||||||||||||||||||||||||
Sale of other investments |
94.3 |
— |
94.3 |
83.6 |
— |
83.6 |
|||||||||||||||||||||||||||
Returns of capital and distributions from unconsolidated partnership investments |
38.2 |
(0.2) |
38.0 |
32.0 |
(12.0) |
20.0 |
|||||||||||||||||||||||||||
Acquisition earn-out payments |
(1.9) |
— |
(1.9) |
(37.2) |
— |
(37.2) |
|||||||||||||||||||||||||||
Sale of management contracts |
— |
— |
— |
16.4 |
— |
16.4 |
|||||||||||||||||||||||||||
Sale of business |
137.0 |
— |
137.0 |
— |
— |
— |
|||||||||||||||||||||||||||
Net cash provided by/(used in) investing activities |
(207.2) |
(32.7) |
(239.9) |
(159.7) |
77.3 |
(82.4) |
|||||||||||||||||||||||||||
Financing activities: |
|||||||||||||||||||||||||||||||||
Proceeds from exercises of share options |
17.9 |
— |
17.9 |
23.0 |
— |
23.0 |
|||||||||||||||||||||||||||
Purchases of treasury shares |
(470.5) |
— |
(470.5) |
(265.0) |
— |
(265.0) |
|||||||||||||||||||||||||||
Dividends paid |
(379.7) |
— |
(379.7) |
(289.0) |
— |
(289.0) |
|||||||||||||||||||||||||||
Excess tax benefits from share-based compensation |
21.6 |
— |
21.6 |
12.7 |
— |
12.7 |
|||||||||||||||||||||||||||
Overdraft on unsettled fund account |
35.7 |
— |
35.7 |
— |
— |
— |
|||||||||||||||||||||||||||
Capital invested into CIP |
— |
17.7 |
17.7 |
— |
20.0 |
20.0 |
|||||||||||||||||||||||||||
Capital distributed by CIP |
— |
(191.5) |
(191.5) |
— |
(277.0) |
(277.0) |
|||||||||||||||||||||||||||
Capital invested into CSIP |
3.9 |
— |
3.9 |
— |
— |
— |
|||||||||||||||||||||||||||
Net borrowings of debt of CIP |
— |
1,365.4 |
1,365.4 |
— |
835.2 |
835.2 |
|||||||||||||||||||||||||||
Net (repayments) of debt of CIP |
— |
(874.8) |
(874.8) |
— |
(602.7) |
(602.7) |
|||||||||||||||||||||||||||
Net borrowings/(repayments) under credit facility |
(586.5) |
— |
(586.5) |
47.5 |
— |
47.5 |
|||||||||||||||||||||||||||
Net proceeds from issuance of debt |
981.5 |
— |
981.5 |
595.1 |
— |
595.1 |
|||||||||||||||||||||||||||
Repayments of senior notes |
— |
— |
— |
(745.7) |
— |
(745.7) |
|||||||||||||||||||||||||||
Net cash provided by/(used in) financing activities |
(376.1) |
316.8 |
(59.3) |
(621.4) |
(24.5) |
(645.9) |
|||||||||||||||||||||||||||
Increase/(decrease) in cash and cash equivalents |
481.0 |
— |
481.0 |
91.0 |
— |
91.0 |
|||||||||||||||||||||||||||
Foreign exchange movement on cash and cash equivalents |
14.7 |
— |
14.7 |
17.1 |
— |
17.1 |
|||||||||||||||||||||||||||
Cash and cash equivalents, beginning of year |
835.5 |
— |
835.5 |
727.4 |
— |
727.4 |
|||||||||||||||||||||||||||
Cash and cash equivalents, end of year |
$1,331.2 |
$— |
$1,331.2 |
$835.5 |
$— |
$835.5 |
|||||||||||||||||||||||||||
See pages 23 through 26 for notes to the reconciliation. |
Invesco Ltd. |
|
We are presenting the following non-GAAP performance measures: net revenue (and by calculation, net revenue yield on AUM), adjusted operating income (and by calculation, adjusted operating margin), adjusted net income attributable to common shareholders (and by calculation, adjusted diluted earnings per share (EPS)). We believe these non-GAAP measures provide greater transparency into our business on an ongoing operations basis and allow more appropriate comparisons with industry peers. Management uses these performance measures to evaluate the business, and they are consistent with internal management reporting. The most directly comparable U.S. GAAP measures are operating revenues (and by calculation, gross revenue yield on AUM), operating income (and by calculation, operating margin), net income (and by calculation, diluted EPS). Non-GAAP measures should not be considered as substitutes for any measures derived in accordance with U.S. GAAP and may not be comparable to other similarly titled measures of other companies. |
|
Notes 1 through 8 relate to the income statement reconciliations presented on pages 12 through 16. Further explanations of the reasons the company considers it appropriate to present these adjustments in arriving at the non-GAAP measures can be found in the company's Form 10-K. |
|
Note 9 relates to the balance sheet and cash flow statement reconciliations on pages 19 and 22, respectively. |
|
1. |
Acquisition/disposition related adjustments |
Acquisition/disposition related adjustments are comprised of amounts incurred by the company in connection with business combinations, including transaction and integration expenses, costs related to legal settlements of pre-acquisition matters, intangible asset amortization, employee severance expenses associated with the cessation of activities related to a previous acquisition, gains and losses related to dispositions, and all related tax effects. In addition, the net (income)/loss from discontinued operations associated with the sale of the Atlantic Trust business has been excluded from the non-GAAP income statement information. Exclusion of this line item assists in evaluating the continuing business performance and comparability with our results period to period, and aids comparability with peer companies that may not have similar discontinued operations. |
|
Adjustment amounts related to acquisition and disposition activities are as follows: |
|
Quarterly |
Year-to-date |
||||||||||||||||||||||||||
in millions |
Q4-13 |
Q3-13 |
Q4-12 |
2013 |
2012 |
||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates |
$— |
$— |
$— |
$— |
$3.5 |
||||||||||||||||||||||
Other gains and losses, net |
— |
— |
— |
— |
(3.5) |
||||||||||||||||||||||
Employee compensation |
— |
— |
— |
2.4 |
— |
||||||||||||||||||||||
Transaction and integration |
— |
— |
2.6 |
3.2 |
8.2 |
||||||||||||||||||||||
Taxation on transaction and integration |
— |
— |
(1.0) |
(1.3) |
(3.1) |
||||||||||||||||||||||
Intangible amortization |
3.8 |
3.8 |
3.9 |
15.4 |
25.5 |
||||||||||||||||||||||
Taxation on amortization |
(0.4) |
(0.4) |
(0.4) |
(1.5) |
(2.6) |
||||||||||||||||||||||
Deferred taxation |
5.2 |
5.4 |
5.0 |
21.3 |
20.1 |
||||||||||||||||||||||
Change in contingent consideration estimates |
— |
— |
— |
— |
(2.3) |
||||||||||||||||||||||
Gain on sale of CLO management contracts |
— |
— |
— |
— |
(8.3) |
||||||||||||||||||||||
Taxation on gain on sale of CLO management contracts |
— |
— |
— |
— |
2.5 |
||||||||||||||||||||||
Other acquisition-related items |
2.0 |
— |
— |
2.0 |
— |
||||||||||||||||||||||
Taxation on other acquisition-related items |
(0.8) |
— |
— |
(0.8) |
— |
||||||||||||||||||||||
(Income)/loss from discontinued operations, net of taxes |
(66.4) |
1.4 |
(10.8) |
(64.5) |
(18.1) |
||||||||||||||||||||||
($56.6) |
$10.2 |
($0.7) |
($23.8) |
$21.9 |
|||||||||||||||||||||||
2. |
Third-party distribution, service and advisory expenses |
Third-party distribution, service and advisory expenses include renewal commissions, management fee rebates and distribution costs (12b-1 and marketing support) paid to brokers and independent financial advisors, which are all closely linked to the revenue earned by Invesco from AUM but vary extensively by geography due to differences in distribution channels. The non-GAAP presentation nets these costs against revenues to arrive at net revenues, which serves to reflect these costs as revenue sharing activities and to remove distortions caused by differing distribution channel fees. |
|
3. |
Proportional share of net revenues and operating income from joint venture investments |
The company has two joint ventures in China. Enhancing operations in China is one effort that the company believes could improve its competitive position over time. U.S. GAAP requires classification of the joint venture net income as equity in earnings of unconsolidated affiliates. The non-GAAP adjustment proportionately consolidates these joint ventures, serving to illustrate the contribution of these joint ventures to the operations of the business. |
|
4. |
Consolidated investment products (CIP) |
Management and performance fees earned by the company, which were eliminated from operating revenues upon consolidation of the CIPs, were $8.1 million in the fourth quarter (third quarter 2013: $12.0 million; fourth quarter 2012: $8.6 million; 2013: $38.3 million; 2012: $41.0 million). Other revenues of $0.4 million were recorded by the CIPs in 2013 (2012: none). By deconsolidating these products in the non-GAAP information, the management and performance fees are added back while the other revenues are excluded. Similarly, the operating expenses of the CIPs and impact on interest income, interest expense, gains and losses, and noncontrolling interests are removed in reconciling from the U.S. GAAP income statement to the non-GAAP information. The consolidation of the investment products resulted in an increase of $1.1 million in net income attributable to common shareholders in the fourth quarter U.S. GAAP earnings (third quarter 2013: $9.4 million decrease; fourth quarter 2012: $2.4 million increase; 2013: $8.7 million decrease; 2012: $10.7 million decrease). The above adjustments remove this impact. |
|
5. |
Market appreciation / depreciation of deferred compensation awards |
This adjustment relates to deferred cash compensation that is linked in value to investment products. The market appreciation of the compensation liability was $8.1 million in the fourth quarter (third quarter 2013: $6.5 million appreciation; fourth quarter 2012: $3.3 million appreciation; 2013: $25.1 million appreciation; 2012: $14.3 million appreciation) with an investment gain, inclusive of interest and dividend income, of $11.8 million in the fourth quarter (third quarter 2013: $10.2 million gain; fourth quarter 2012: $3.5 million gain; 2013: $42.5 million gain; 2012: $24.4 million gain) on the assets held to hedge economically the compensation liability. This change in compensation expense and the investment income are adjusted in arriving at the non-GAAP information and, net of the applicable tax credit of $1.1 million in the fourth quarter (third quarter 2013: $1.2 million credit; fourth quarter 2012: none; 2013: $4.8 million credit; 2012: $2.7 million credit), result in a net income deduction of $2.6 million for the fourth quarter (third quarter 2013: $2.5 million deduction; fourth quarter 2012: $0.2 million deduction; 2013: $12.6 million deduction; 2012: $7.4 million deduction). |
|
6. |
Other reconciling items |
Quarterly |
Year-to-date |
||||||||||||||||||||||||||
in millions |
Q4-13 |
Q3-13 |
Q4-12 |
2013 |
2012 |
||||||||||||||||||||||
European infrastructure initiative (a): |
|||||||||||||||||||||||||||
Compensation |
$0.6 |
($0.3) |
$1.9 |
$1.6 |
$5.6 |
||||||||||||||||||||||
Third party distribution, service and advisory |
— |
— |
15.3 |
2.7 |
15.3 |
||||||||||||||||||||||
Marketing |
— |
— |
0.1 |
0.2 |
1.6 |
||||||||||||||||||||||
Property, office and technology |
0.2 |
0.1 |
2.3 |
2.3 |
5.8 |
||||||||||||||||||||||
General and Administrative |
0.2 |
0.7 |
2.1 |
6.7 |
7.3 |
||||||||||||||||||||||
Taxation |
(0.2) |
(0.1) |
(4.9) |
(2.8) |
(7.6) |
||||||||||||||||||||||
Capitalized software development write-off (b) |
11.7 |
— |
— |
11.7 |
— |
||||||||||||||||||||||
Taxation on capitalized software development write-off (b) |
(4.3) |
— |
— |
(4.3) |
— |
||||||||||||||||||||||
Foreign exchange hedge amortization (c) |
(0.3) |
0.5 |
(0.6) |
(0.6) |
0.8 |
||||||||||||||||||||||
Taxation on foreign exchange hedge amortization (c) |
0.1 |
(0.1) |
0.1 |
0.2 |
(0.2) |
||||||||||||||||||||||
Payment to an investment trust (d) |
31.9 |
— |
— |
31.9 |
— |
||||||||||||||||||||||
Taxation on payment to an investment trust (d) |
(12.1) |
— |
— |
(12.1) |
— |
||||||||||||||||||||||
Investment management fees accrual adjustment (e) |
4.3 |
— |
— |
4.3 |
— |
||||||||||||||||||||||
Taxation on investment management fees accrual adjustment (e) |
(1.1) |
— |
— |
(1.1) |
— |
||||||||||||||||||||||
Senior notes call premium (f) |
— |
— |
23.5 |
— |
23.5 |
||||||||||||||||||||||
Taxation on senior notes call premium (f) |
— |
— |
(5.8) |
— |
(5.8) |
||||||||||||||||||||||
$31.0 |
$0.8 |
$34.0 |
$40.7 |
$46.3 |
|||||||||||||||||||||||
a. |
European infrastructure transformational initiative: The company has outsourced its European transfer agency and is making certain structural changes to product and distribution platforms. Expenses incurred related to the European infrastructure activities are excluded in arriving at the non-GAAP financial information. |
|
b. |
Property, office and technology expenses includes a charge of $11.7 million in the fourth quarter and year ended December 31, 2013 related to the write-off of capitalized IT software development costs. |
|
c. |
Included within other gains and losses, net is the mark-to-market of foreign exchange put option contracts intended to provide protection against the impact of a significant decline in the Pound Sterling/U.S. Dollar foreign exchange rate. These contracts provide coverage through March 25, 2014. The adjustment from U.S. GAAP to non-GAAP earnings removes the impact of market volatility; therefore, the company's non-GAAP results include only the amortization of the cost of the contracts during the contract period. |
|
d. |
On December 31, 2013, at the time of creating a new trust company subsidiary to continue operating the company's institutional trust activities immediately following the disposition of Atlantic Trust, the company made a $31.9 million payment to a managed investment trust, which resulted in the subsequent termination of an outstanding support agreement. This expense was recorded in other gains/(losses) in the company's Consolidated Statement of Income during the three months ended December 31, 2013. |
|
e. |
During the three months ended December 31, 2013, the company reduced a management fee revenue accrual by $4.3 million to reflect a multi-year true-up. Inclusion of this true-up in the company's non-GAAP financial information would depress the derived metric of net revenue yield on AUM from continuing operations, an important metric derived from a non-GAAP financial measure which is often contemplated by users of the company's financial information to evaluate the company with industry peers. The true-up is not indicative of a trend in future net revenue yield on AUM; therefore, it is not included in management's evaluation of the results of the business. On this basis, the amount is added back to management fees to arrive at net revenues. |
|
f. |
Other gains and losses, net included a charge of $23.5 million in the fourth quarter and year ended December 31, 2012 related to the call premiums on the redemption of the $333.5 million principal amount of 5.375% Senior Notes due February 27, 2013 and the $197.1 million principal amount of the 5.375% Senior Notes due December 15, 2014. |
|
Each of these other reconciling items has been adjusted from U.S. GAAP to arrive at the company's non-GAAP financial measures for the reasons either outlined in the paragraphs above, due to the unique character and magnitude of the reconciling item, or because the item represents a continuation of a reconciling item adjusted from U.S. GAAP in a prior period. |
||
7. |
Definition of operating margin and adjusted operating margin |
|
Operating margin is equal to operating income divided by operating revenues. Adjusted operating margin is equal to adjusted operating income divided by net revenues. |
||
8. |
Definition of adjusted diluted EPS |
|
Adjusted diluted EPS is equal to adjusted net income attributable to common shareholders divided by the weighted average number of shares outstanding. |
||
9. |
Balance sheets and cash flow information excluding CIP |
|
U.S. GAAP condensed consolidating balance sheets and condensed consolidated statements of cash flows reflect the consolidation of CIP. The majority of the company's CIP balances are CLO-related. The collateral assets of the CLOs are held solely to satisfy the obligations of the CLOs. The company has no right to the benefits from, nor does it bear the risks associated with, the collateral assets held by the CLOs, beyond the company's minimal direct investments in, and management fees generated from, CLOs. If the company were to liquidate, the collateral assets would not be available to the general creditors of the company, and as a result, the company does not consider them to be company assets. Additionally, the investors in the CLOs have no recourse to the general credit of the company for the notes issued by the CLOs. The company therefore does not consider this debt to be a company liability. Similarly, cash held by CIP is not available for general use by Invesco, nor is Invesco cash available for general use by its CIP. |
||
By deconsolidating the CIP in the condensed consolidated balance sheet information excluding CIP, the assets, liabilities and equity of the CIP are removed and the company's equity interest in the investment products, accounted for as equity method and available-for-sale investments, are replaced. The company considers this a more representative presentation of the company's financial position, and calculations made therefrom, such as debt-to-equity ratios, are more meaningful excluding these balances. |
||
The condensed consolidated cash flow information excluding CIP present the cash flows of the company separately and before consolidation of CIP, as the cash flows of CIP do not form part of the company's cash flow management processes, nor do they form part of the company's significant liquidity evaluations and decisions for the reasons noted. |
Invesco Ltd. Quarterly Assets Under Management(f) |
||||||||
(in billions) |
Q4-13 |
Q3-13 |
% Change |
Q4-12 |
||||
Beginning Assets |
$745.5 |
$705.6 |
5.7% |
$663.0 |
||||
Long-term inflows |
45.8 |
41.8 |
9.6% |
34.4 |
||||
Long-term outflows |
(44.8) |
(36.8) |
21.7% |
(31.7) |
||||
Long-term net flows |
1.0 |
5.0 |
(80.0)% |
2.7 |
||||
Net flows in Invesco PowerShares QQQ fund |
2.6 |
0.8 |
225.0% |
(2.5) |
||||
Net flows in institutional money market funds |
1.6 |
3.3 |
(51.5)% |
0.1 |
||||
Total net flows |
5.2 |
9.1 |
(42.9)% |
0.3 |
||||
Market gains and losses/reinvestment |
27.2 |
22.4 |
21.4% |
5.3 |
||||
Foreign currency translation |
0.8 |
8.4 |
(90.5)% |
(1.2) |
||||
Ending Assets |
$778.7 |
$745.5 |
4.5% |
$667.4 |
||||
Average long-term AUM |
$643.5 |
$616.2 |
4.4% |
$559.0 |
||||
Average short-term AUM (d) |
118.2 |
113.2 |
4.4% |
101.2 |
||||
Average AUM |
$761.7 |
$729.4 |
4.4% |
$660.2 |
||||
Gross revenue yield on AUM(a) |
64.7bps |
64.6bps |
63.7bps |
|||||
Gross revenue yield on AUM before performance fees(a) |
64.3bps |
64.3bps |
63.6bps |
|||||
Net revenue yield on AUM(b) |
45.0bps |
44.8bps |
44.3bps |
|||||
Net revenue yield on AUM before performance fees(b) |
44.4bps |
44.3bps |
44.0bps |
|||||
(in billions) |
Total AUM |
Active(e) |
Passive(e) |
|||||
September 30, 2013 |
$745.5 |
$615.9 |
$129.6 |
|||||
Long-term inflows |
45.8 |
37.2 |
8.6 |
|||||
Long-term outflows |
(44.8) |
(36.9) |
(7.9) |
|||||
Long-term net flows |
1.0 |
0.3 |
0.7 |
|||||
Net flows in Invesco PowerShares QQQ fund |
2.6 |
— |
2.6 |
|||||
Net flows in institutional money market funds |
1.6 |
1.6 |
— |
|||||
Total net flows |
5.2 |
1.9 |
3.3 |
|||||
Market gains and losses/reinvestment |
27.2 |
20.2 |
7.0 |
|||||
Foreign currency translation |
0.8 |
1.0 |
(0.2) |
|||||
December 31, 2013 |
$778.7 |
$639.0 |
$139.7 |
|||||
Average AUM |
$761.7 |
$627.6 |
$134.1 |
|||||
Gross revenue yield on AUM(a) |
64.7bps |
76.0bps |
12.3bps |
|||||
Net revenue yield on AUM(b) |
45.0bps |
52.0bps |
12.3bps |
|||||
By channel: (in billions) |
Total |
Retail |
Institutional |
|||||
September 30, 2013 |
$745.5 |
$492.0 |
$253.5 |
|||||
Long-term inflows |
45.8 |
35.8 |
10.0 |
|||||
Long-term outflows |
(44.8) |
(36.1) |
(8.7) |
|||||
Long-term net flows |
1.0 |
(0.3) |
1.3 |
|||||
Net flows in Invesco PowerShares QQQ fund |
2.6 |
2.6 |
— |
|||||
Net flows in institutional money market funds |
1.6 |
— |
1.6 |
|||||
Total net flows |
5.2 |
2.3 |
2.9 |
|||||
Market gains and losses/reinvestment |
27.2 |
24.0 |
3.2 |
|||||
Foreign currency translation |
0.8 |
1.3 |
(0.5) |
|||||
December 31, 2013 |
$778.7 |
$519.6 |
$259.1 |
|||||
See the footnotes immediately following these tables. |
Invesco Ltd. Quarterly Assets Under Management(f) (continued) |
|||||||||||
By asset class: (in billions) |
Total |
Equity |
Fixed Income |
Balanced |
Money Market (d) |
Alternatives(c) |
|||||
September 30, 2013 |
$745.5 |
$353.2 |
$172.4 |
$53.5 |
$81.1 |
$85.3 |
|||||
Long-term inflows |
45.8 |
26.2 |
7.2 |
3.4 |
0.8 |
8.2 |
|||||
Long-term outflows |
(44.8) |
(24.7) |
(8.9) |
(4.6) |
(0.9) |
(5.7) |
|||||
Long-term net flows |
1.0 |
1.5 |
(1.7) |
(1.2) |
(0.1) |
2.5 |
|||||
Net flows in Invesco PowerShares QQQ fund |
2.6 |
2.6 |
— |
— |
— |
— |
|||||
Net flows in institutional money market funds |
1.6 |
— |
— |
— |
1.6 |
— |
|||||
Total net flows |
5.2 |
4.1 |
(1.7) |
(1.2) |
1.5 |
2.5 |
|||||
Market gains and losses/reinvestment |
27.2 |
25.1 |
0.9 |
0.8 |
0.1 |
0.3 |
|||||
Foreign currency translation |
0.8 |
0.7 |
0.1 |
0.2 |
— |
(0.2) |
|||||
December 31, 2013 |
$778.7 |
$383.1 |
$171.7 |
$53.3 |
$82.7 |
$87.9 |
|||||
Average AUM |
$761.7 |
$368.7 |
$172.7 |
$54.1 |
$79.1 |
$87.1 |
|||||
By client domicile: (in billions) |
Total |
U.S. |
Canada |
U.K. |
Continental Europe |
Asia |
|||||
September 30, 2013 |
$745.5 |
$502.5 |
$26.4 |
$113.1 |
$51.6 |
$51.9 |
|||||
Long-term inflows |
45.8 |
23.3 |
0.9 |
4.2 |
9.3 |
8.1 |
|||||
Long-term outflows |
(44.8) |
(24.5) |
(1.1) |
(8.4) |
(5.9) |
(4.9) |
|||||
Long-term net flows |
1.0 |
(1.2) |
(0.2) |
(4.2) |
3.4 |
3.2 |
|||||
Net flows in Invesco PowerShares QQQ fund |
2.6 |
2.6 |
— |
— |
— |
— |
|||||
Net flows in institutional money market funds |
1.6 |
(1.6) |
0.1 |
(0.3) |
3.2 |
0.2 |
|||||
Total net flows |
5.2 |
(0.2) |
(0.1) |
(4.5) |
6.6 |
3.4 |
|||||
Market gains and losses/reinvestment |
27.2 |
18.9 |
1.7 |
3.8 |
2.5 |
0.3 |
|||||
Foreign currency translation |
0.8 |
0.1 |
(0.9) |
2.4 |
0.2 |
(1.0) |
|||||
December 31, 2013 |
$778.7 |
$521.3 |
$27.1 |
$114.8 |
$60.9 |
$54.6 |
|||||
See the footnotes immediately following these tables. |
Invesco Ltd. Year-to-Date Assets Under Management(f) |
|||||||||||
(in billions) |
December 31, 2013 |
December 31, 2012 |
% Change |
||||||||
Beginning Assets |
$667.4 |
$607.3 |
9.9 |
% |
|||||||
Long-term inflows |
179.6 |
131.9 |
36.2 |
% |
|||||||
Long-term outflows |
(157.9) |
(121.5) |
30.0 |
% |
|||||||
Long-term net flows |
21.7 |
10.4 |
108.7 |
% |
|||||||
Net flows in Invesco PowerShares QQQ fund |
3.7 |
0.2 |
N/A |
||||||||
Net flows in institutional money market funds |
9.0 |
0.1 |
N/A |
||||||||
Total net flows |
34.4 |
10.7 |
221.5 |
% |
|||||||
Market gains and losses/reinvestment |
78.8 |
48.3 |
63.1 |
% |
|||||||
Acquisitions/dispositions, net |
— |
(1.7) |
N/A |
||||||||
Foreign currency translation |
(1.9) |
2.8 |
N/A |
||||||||
Ending Assets |
$778.7 |
$667.4 |
16.7 |
% |
|||||||
Average long-term AUM |
$613.7 |
$543.5 |
12.9 |
% |
|||||||
Average short-term AUM (d) |
111.9 |
101.8 |
9.9 |
% |
|||||||
Average AUM |
$725.6 |
$645.3 |
12.4 |
% |
|||||||
Gross revenue yield on AUM(a) |
64.4 |
bps |
63.1 |
bps |
|||||||
Gross revenue yield on AUM before performance fees(a) |
63.6 |
bps |
62.4 |
bps |
|||||||
Net revenue yield on AUM(b) |
44.8 |
bps |
43.9 |
bps |
|||||||
Net revenue yield on AUM before performance fees(b) |
43.9 |
bps |
43.3 |
bps |
|||||||
(in billions) |
Total AUM |
Active(e) |
Passive(e) |
||||||||
December 31, 2012 |
$667.4 |
$553.4 |
$114.0 |
||||||||
Long-term inflows |
179.6 |
137.0 |
42.6 |
||||||||
Long-term outflows |
(157.9) |
(123.9) |
(34.0) |
||||||||
Long-term net flows |
21.7 |
13.1 |
8.6 |
||||||||
Net flows in Invesco PowerShares QQQ fund |
3.7 |
— |
3.7 |
||||||||
Net flows in institutional money market funds |
9.0 |
9.0 |
— |
||||||||
Total net flows |
34.4 |
22.1 |
12.3 |
||||||||
Market gains and losses/reinvestment |
78.8 |
64.5 |
14.3 |
||||||||
Foreign currency translation |
(1.9) |
(1.0) |
(0.9) |
||||||||
December 31, 2013 |
$778.7 |
$639.0 |
$139.7 |
||||||||
Average AUM |
$725.6 |
$598.9 |
$126.7 |
||||||||
Gross revenue yield on AUM(a) |
64.4 |
bps |
75.6 |
bps |
11.6 |
bps |
|||||
Net revenue yield on AUM(b) |
44.8 |
bps |
51.8 |
bps |
11.6 |
bps |
|||||
By channel: (in billions) |
Total |
Retail |
Institutional |
||||||||
December 31, 2012 |
$667.4 |
$425.8 |
$241.6 |
||||||||
Long-term inflows |
179.6 |
145.2 |
34.4 |
||||||||
Long-term outflows |
(157.9) |
(123.8) |
(34.1) |
||||||||
Long-term net flows |
21.7 |
21.4 |
0.3 |
||||||||
Net flows in Invesco PowerShares QQQ fund |
3.7 |
3.7 |
— |
||||||||
Net flows in institutional money market funds |
9.0 |
— |
9.0 |
||||||||
Total net flows |
34.4 |
25.1 |
9.3 |
||||||||
Market gains and losses/reinvestment |
78.8 |
68.1 |
10.7 |
||||||||
Foreign currency translation |
(1.9) |
0.6 |
(2.5) |
||||||||
December 31, 2013 |
$778.7 |
$519.6 |
$259.1 |
||||||||
See the footnotes immediately following these tables. |
Invesco Ltd. Year-to-Date Assets Under Management(f) (continued) |
|||||||||||||||||||||||
By asset class: (in billions) |
Total |
Equity |
Fixed Income |
Balanced |
Money Market (d) |
Alternatives(c) |
|||||||||||||||||
December 31, 2012 |
$667.4 |
$295.6 |
$171.9 |
$43.6 |
$73.3 |
$83.0 |
|||||||||||||||||
Long-term inflows |
179.6 |
88.5 |
39.3 |
19.7 |
3.7 |
28.4 |
|||||||||||||||||
Long-term outflows |
(157.9) |
(81.5) |
(37.0) |
(13.6) |
(3.5) |
(22.3) |
|||||||||||||||||
Long-term net flows |
21.7 |
7.0 |
2.3 |
6.1 |
0.2 |
6.1 |
|||||||||||||||||
Net flows in Invesco PowerShares QQQ fund |
3.7 |
3.7 |
— |
— |
— |
— |
|||||||||||||||||
Net flows in institutional money market funds |
9.0 |
— |
— |
— |
9.0 |
— |
|||||||||||||||||
Total net flows |
34.4 |
10.7 |
2.3 |
6.1 |
9.2 |
6.1 |
|||||||||||||||||
Market gains and losses/reinvestment |
78.8 |
77.4 |
(2.2) |
3.5 |
0.3 |
(0.2) |
|||||||||||||||||
Foreign currency translation |
(1.9) |
(0.6) |
(0.3) |
0.1 |
(0.1) |
(1.0) |
|||||||||||||||||
December 31, 2013 |
$778.7 |
$383.1 |
$171.7 |
$53.3 |
$82.7 |
$87.9 |
|||||||||||||||||
Average AUM |
$725.6 |
$336.0 |
$173.9 |
$51.2 |
$79.4 |
$85.1 |
|||||||||||||||||
By client domicile: (in billions) |
Total |
U.S. |
Canada |
U.K. |
Continental Europe |
Asia |
|||||||||||||||||
December 31, 2012 |
$667.4 |
$452.5 |
$25.2 |
$101.9 |
$38.8 |
$49.0 |
|||||||||||||||||
Long-term inflows |
179.6 |
104.7 |
3.8 |
16.3 |
32.1 |
22.7 |
|||||||||||||||||
Long-term outflows |
(157.9) |
(94.2) |
(4.7) |
(22.0) |
(19.0) |
(18.0) |
|||||||||||||||||
Long-term net flows |
21.7 |
10.5 |
(0.9) |
(5.7) |
13.1 |
4.7 |
|||||||||||||||||
Net flows in Invesco PowerShares QQQ fund |
3.7 |
3.7 |
— |
— |
— |
— |
|||||||||||||||||
Net flows in institutional money market funds |
9.0 |
6.0 |
0.2 |
(0.2) |
3.1 |
(0.1) |
|||||||||||||||||
Total net flows |
34.4 |
20.2 |
(0.7) |
(5.9) |
16.2 |
4.6 |
|||||||||||||||||
Market gains and losses/reinvestment |
78.8 |
48.3 |
4.4 |
16.3 |
5.5 |
4.3 |
|||||||||||||||||
Foreign currency translation |
(1.9) |
0.3 |
(1.8) |
2.5 |
0.4 |
(3.3) |
|||||||||||||||||
December 31, 2013 |
$778.7 |
$521.3 |
$27.1 |
$114.8 |
$60.9 |
$54.6 |
|||||||||||||||||
See the footnotes immediately following these tables. |
Invesco Ltd. Quarterly Assets Under Management - Passive(e) |
||||||||||||
(in billions) |
Q4-13 |
Q3-13 |
% Change |
Q4-12 |
||||||||
Beginning Assets |
$129.6 |
$123.7 |
4.8% |
$117.9 |
||||||||
Long-term inflows |
8.6 |
8.7 |
(1.1)% |
6.7 |
||||||||
Long-term outflows |
(7.9) |
(8.5) |
(7.1)% |
(5.1) |
||||||||
Long-term net flows |
0.7 |
0.2 |
250.0% |
1.6 |
||||||||
Net flows in Invesco PowerShares QQQ fund |
2.6 |
0.8 |
225.0% |
(2.5) |
||||||||
Net flows in institutional money market funds |
— |
— |
N/A |
— |
||||||||
Total net flows |
3.3 |
1.0 |
230.0% |
(0.9) |
||||||||
Market gains and losses/reinvestment |
7.0 |
4.9 |
42.9% |
(2.6) |
||||||||
Foreign currency translation |
(0.2) |
— |
N/A |
(0.4) |
||||||||
Ending Assets |
$139.7 |
$129.6 |
7.8% |
$114.0 |
||||||||
Average long-term AUM |
92.4 |
89.6 |
3.1% |
82.0 |
||||||||
Average short-term AUM (d) |
41.7 |
37.1 |
12.4% |
31.6 |
||||||||
Average AUM |
$134.1 |
$126.7 |
5.8% |
$113.6 |
||||||||
Gross revenue yield on AUM(a) |
12.3bps |
11.8bps |
10.0bps |
|||||||||
Gross revenue yield on AUM before performance fees(a) |
12.3bps |
11.8bps |
10.0bps |
|||||||||
Net revenue yield on AUM(b) |
12.3bps |
11.8bps |
10.0bps |
|||||||||
Net revenue yield on AUM before performance fees(b) |
12.3bps |
11.8bps |
10.0bps |
|||||||||
By channel: (in billions) |
Total |
Retail |
Institutional |
|||||||||
September 30, 2013 |
$129.6 |
$108.3 |
$21.3 |
|||||||||
Long-term inflows |
8.6 |
7.6 |
1.0 |
|||||||||
Long-term outflows |
(7.9) |
(7.1) |
(0.8) |
|||||||||
Long-term net flows |
0.7 |
0.5 |
0.2 |
|||||||||
Net flows in Invesco PowerShares QQQ fund |
2.6 |
2.6 |
— |
|||||||||
Net flows in institutional money market funds |
— |
— |
— |
|||||||||
Total net flows |
3.3 |
3.1 |
0.2 |
|||||||||
Market gains and losses/reinvestment |
7.0 |
6.8 |
0.2 |
|||||||||
Foreign currency translation |
(0.2) |
— |
(0.2) |
|||||||||
December 31, 2013 |
$139.7 |
$118.2 |
$21.5 |
|||||||||
By asset class: (in billions) |
Total |
Equity |
Fixed Income |
Balanced |
Money Market |
Alternatives(c) |
||||||
September 30, 2013 |
$129.6 |
$74.1 |
$39.6 |
$— |
$— |
$15.9 |
||||||
Long-term inflows |
8.6 |
6.3 |
1.7 |
— |
— |
0.6 |
||||||
Long-term outflows |
(7.9) |
(4.5) |
(1.6) |
— |
— |
(1.8) |
||||||
Long-term net flows |
0.7 |
1.8 |
0.1 |
— |
— |
(1.2) |
||||||
Net flows in Invesco PowerShares QQQ fund |
2.6 |
2.6 |
— |
— |
— |
— |
||||||
Net flows in institutional money market funds |
— |
— |
— |
— |
— |
— |
||||||
Total net flows |
3.3 |
4.4 |
0.1 |
— |
— |
(1.2) |
||||||
Market gains and losses/reinvestment |
7.0 |
7.1 |
(0.2) |
— |
— |
0.1 |
||||||
Foreign currency translation |
(0.2) |
— |
— |
— |
— |
(0.2) |
||||||
December 31, 2013 |
$139.7 |
$85.6 |
$39.5 |
$— |
$— |
$14.6 |
||||||
Average AUM |
$134.1 |
$79.6 |
$40.0 |
$— |
$— |
$14.5 |
||||||
By client domicile: (in billions) |
Total |
U.S. |
Canada |
U.K. |
Continental Europe |
Asia |
||||||
September 30, 2013 |
$129.6 |
$125.4 |
$0.1 |
$— |
$1.4 |
$2.7 |
||||||
Long-term inflows |
8.6 |
8.4 |
— |
— |
0.2 |
— |
||||||
Long-term outflows |
(7.9) |
(7.9) |
— |
— |
— |
— |
||||||
Long-term net flows |
0.7 |
0.5 |
— |
— |
0.2 |
— |
||||||
Net flows in Invesco PowerShares QQQ fund |
2.6 |
2.6 |
— |
— |
— |
— |
||||||
Net flows in institutional money market funds |
— |
— |
— |
— |
— |
— |
||||||
Total net flows |
3.3 |
3.1 |
— |
— |
0.2 |
— |
||||||
Market gains and losses/reinvestment |
7.0 |
6.7 |
— |
— |
0.2 |
0.1 |
||||||
Foreign currency translation |
(0.2) |
— |
— |
— |
— |
(0.2) |
||||||
December 31, 2013 |
$139.7 |
$135.2 |
$0.1 |
$— |
$1.8 |
$2.6 |
||||||
See the footnotes immediately following these tables. |
Invesco Ltd. Year-to-Date Assets Under Management - Passive(e) |
||||||||||||
(in billions) |
December 31, 2013 |
December 31, 2012 |
% Change |
|||||||||
Beginning Assets |
$114.0 |
$96.3 |
18.4% |
|||||||||
Long-term inflows |
42.6 |
29.7 |
43.4% |
|||||||||
Long-term outflows |
(34.0) |
(18.8) |
80.9% |
|||||||||
Long-term net flows |
8.6 |
10.9 |
(21.1)% |
|||||||||
Net flows in Invesco PowerShares QQQ fund |
3.7 |
0.2 |
N/A |
|||||||||
Net flows in institutional money market funds |
— |
— |
N/A |
|||||||||
Total net flows |
12.3 |
11.1 |
10.8% |
|||||||||
Market gains and losses/reinvestment |
14.3 |
7.0 |
104.3% |
|||||||||
Foreign currency translation |
(0.9) |
(0.4) |
125.0% |
|||||||||
Ending Assets |
$139.7 |
$114.0 |
22.5% |
|||||||||
Average long-term AUM |
90.4 |
77.4 |
16.8% |
|||||||||
Average short-term AUM (d) |
36.3 |
32.8 |
10.7% |
|||||||||
Average AUM |
$126.7 |
$110.2 |
15.0% |
|||||||||
Gross revenue yield on AUM(a) |
11.6 |
bps |
9.3 |
bps |
||||||||
Gross revenue yield on AUM before performance fees(a) |
11.6 |
bps |
9.3 |
bps |
||||||||
Net revenue yield on AUM(b) |
11.6 |
bps |
9.3 |
bps |
||||||||
Net revenue yield on AUM before performance fees(b) |
11.6 |
bps |
9.3 |
bps |
||||||||
By channel: (in billions) |
Total |
Retail |
Institutional |
|||||||||
December 31, 2012 |
$114.0 |
$91.2 |
$22.8 |
|||||||||
Long-term inflows |
42.6 |
36.7 |
5.9 |
|||||||||
Long-term outflows |
(34.0) |
(27.0) |
(7.0) |
|||||||||
Long-term net flows |
8.6 |
9.7 |
(1.1) |
|||||||||
Net flows in Invesco PowerShares QQQ fund |
3.7 |
3.7 |
— |
|||||||||
Net flows in institutional money market funds |
— |
— |
— |
|||||||||
Total net flows |
12.3 |
13.4 |
(1.1) |
|||||||||
Market gains and losses/reinvestment |
14.3 |
13.6 |
0.7 |
|||||||||
Foreign currency translation |
(0.9) |
— |
(0.9) |
|||||||||
December 31, 2013 |
$139.7 |
$118.2 |
$21.5 |
|||||||||
By asset class: (in billions) |
Total |
Equity |
Fixed Income |
Balanced |
Money Market |
Alternatives(c) |
||||||
December 31, 2012 |
$114.0 |
$55.5 |
$39.0 |
$— |
$— |
$19.5 |
||||||
Long-term inflows |
42.6 |
25.4 |
13.0 |
— |
— |
4.2 |
||||||
Long-term outflows |
(34.0) |
(16.1) |
(10.1) |
— |
— |
(7.8) |
||||||
Long-term net flows |
8.6 |
9.3 |
2.9 |
— |
— |
(3.6) |
||||||
Net flows in Invesco PowerShares QQQ fund |
3.7 |
3.7 |
— |
— |
— |
— |
||||||
Net flows in institutional money market funds |
— |
— |
— |
— |
— |
— |
||||||
Total net flows |
12.3 |
13.0 |
2.9 |
— |
— |
(3.6) |
||||||
Market gains and losses/reinvestment |
14.3 |
17.1 |
(2.4) |
— |
— |
(0.4) |
||||||
Foreign currency translation |
(0.9) |
— |
— |
— |
— |
(0.9) |
||||||
December 31, 2013 |
$139.7 |
$85.6 |
$39.5 |
$— |
$— |
$14.6 |
||||||
Average AUM |
$126.7 |
$69.1 |
$41.4 |
$— |
$— |
$16.2 |
||||||
By client domicile: (in billions) |
Total |
U.S. |
Canada |
U.K. |
Continental Europe |
Asia |
||||||
December 31, 2012 |
$114.0 |
$107.8 |
$0.1 |
$— |
$1.1 |
$5.0 |
||||||
Long-term inflows |
42.6 |
41.8 |
— |
— |
0.7 |
0.1 |
||||||
Long-term outflows |
(34.0) |
(31.5) |
— |
— |
(0.3) |
(2.2) |
||||||
Long-term net flows |
8.6 |
10.3 |
— |
— |
0.4 |
(2.1) |
||||||
Net flows in Invesco PowerShares QQQ fund |
3.7 |
3.7 |
— |
— |
— |
— |
||||||
Net flows in institutional money market funds |
— |
— |
— |
— |
— |
— |
||||||
Total net flows |
12.3 |
14.0 |
— |
— |
0.4 |
(2.1) |
||||||
Market gains and losses/reinvestment |
14.3 |
13.4 |
— |
— |
0.3 |
0.6 |
||||||
Foreign currency translation |
(0.9) |
— |
— |
— |
— |
(0.9) |
||||||
December 31, 2013 |
$139.7 |
$135.2 |
$0.1 |
$— |
$1.8 |
$2.6 |
||||||
See the footnotes immediately following these tables. |
Invesco Ltd. |
|
(a) |
Gross revenue yield on AUM is equal to annualized total operating revenues divided by average AUM, excluding China joint venture (JV) AUM. For quarterly AUM, our share of the average AUM in the fourth quarter for our JVs in China were $4.8 billion (third quarter 2013: $4.0 billion; fourth quarter 2012: $2.9 billion). For year to date AUM, our share of the average AUM in the twelve months of 2013 for our JVs in China was $4.0 billion (twelve months of 2012: $3.0 billion). It is appropriate to exclude the average AUM of our China JVs for purposes of computing gross revenue yield on AUM, because the revenues resulting from these AUM are not presented in our operating revenues. Under U.S. GAAP, our share of the net income of the JVs is recorded as equity in earnings of unconsolidated affiliates on our Condensed Consolidated Statements of Income. Gross revenue yield, the most comparable U.S. GAAP-based measure to net revenue yield, is not considered a meaningful effective fee rate measure. The numerator of the gross revenue yield measure, operating revenues, excludes the management fees earned from CIP; however, the denominator of the measure includes the AUM of these investment products. Therefore, the gross revenue yield measure is not considered representative of the company's true effective fee rate from AUM. The company evaluates net revenue yield instead. See the Reconciliations of U.S. GAAP to Non-GAAP information on pages 12 through 16 of this release for a reconciliation of operating revenues to net revenues. |
(b) |
Net revenue yield on AUM is equal to annualized net revenues divided by average AUM. See the reconciliations of U.S. GAAP to Non-GAAP Information on pages 12 through 16 of this release for a reconciliation of operating revenues to net revenues. |
(c) |
The alternatives asset class includes absolute return, Asian direct real estate, commodities, currencies, European direct real estate, financial structures, Global REITS, private capital - direct, private capital - fund of funds, Risk Parity, U.S. direct real estate, and U.S. REITS. |
(d) |
Short-term ending AUM as of December 31, 2013 includes $76.1 billion in institutional money market AUM and $45.7 billion in PowerShares QQQ AUM. Ending retail money market AUM as of December 31, 2013, included in long-term AUM, were $6.6 billion. |
(e) |
Passive AUM includes ETFs, UITs, non-fee earning leverage, foreign exchange overlays and other passive mandates. Active AUM are total AUM less Passive AUM. |
(f) |
On December 31, 2013, the company completed the sale of Atlantic Trust. AUM presented for periods prior to the close date exclude total AUM of Atlantic Trust of $22.8 billion at September 30, 2013 ($21.7 billion at June 30, 2013; $20.3 billion at December 31, 2012; $20.0 billion at September 30, 2012; $19.0 billion at June 30, 2012; $18.0 billion at December 31, 2011). |
Invesco Ltd. Investment Capabilities Performance Overview |
|||||||
Benchmark Comparison |
Peer Group Comparison |
||||||
% of AUM Ahead of Benchmark |
% of AUM In Top Half of Peer Group |
||||||
Equities |
1yr |
3yr |
5yr |
1yr |
3yr |
5yr |
|
U.S. Core |
32% |
49% |
26% |
17% |
48% |
17% |
|
U.S. Growth |
71% |
30% |
38% |
70% |
24% |
38% |
|
U.S. Value |
81% |
57% |
80% |
71% |
81% |
56% |
|
Sector |
77% |
72% |
97% |
19% |
23% |
53% |
|
U.K. |
98% |
99% |
86% |
96% |
98% |
11% |
|
Canadian |
100% |
100% |
73% |
96% |
72% |
56% |
|
Asian |
76% |
78% |
77% |
64% |
68% |
67% |
|
Continental European |
96% |
100% |
100% |
67% |
94% |
94% |
|
Global |
72% |
91% |
61% |
85% |
85% |
69% |
|
Global Ex U.S. and Emerging Markets |
83% |
97% |
97% |
6% |
94% |
97% |
|
Other |
|||||||
Alternatives |
32% |
49% |
47% |
67% |
60% |
26% |
|
Balanced |
43% |
73% |
60% |
62% |
97% |
97% |
|
Fixed Income |
|||||||
Money Market |
52% |
58% |
58% |
96% |
96% |
96% |
|
U.S. Fixed Income |
60% |
87% |
81% |
72% |
95% |
84% |
|
Global Fixed Income |
84% |
85% |
97% |
79% |
84% |
86% |
|
Stable Value |
100% |
100% |
100% |
100% |
100% |
25% |
|
Note: |
AUM measured in the one-, three-, and five-year peer group rankings represents 61%, 61%, and 57% of total Invesco AUM, respectively, and AUM measured versus benchmark on a one-, three-, and five-year basis represents 72%, 72%, and 68% of total Invesco AUM, respectively, as of 12/31/2013. Peer group rankings are sourced from a widely-used third party ranking agency in each fund's market (Lipper, Morningstar, IMA, Russell, Mercer, eVestment Alliance, SITCA, Value Research) and are asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and preceding month-end for Australian retail funds due to their late release by third parties. Rankings for the most representative fund in each GIPS composite are applied to all products within each GIPS composite. Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary funds, unit investment trusts, fund of funds with component funds managed by Invesco, stable value building block funds, and CDOs. Atlantic Trust results are excluded due to its disposition. Certain funds and products were excluded from the analysis because of limited benchmark or peer group data. Had these been available, results may have been different. These results are preliminary and subject to revision. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor's experience. |
SOURCE Invesco Ltd.
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